German software giant SAP to slash 3,000 jobs
The German multinational software corporation SAP has announced plans to slash nearly 3,000 jobs worldwide in a drastic effort, which the company termed its larger transformation plan aimed at reducing costs and improving the company’s profitability.
"The programme is expected to affect approximately 2.5 per cent of SAP's employees. The restructuring is expected to lead to annual savings of 300-350 million euros from 2024, which will help to fuel investments into strategic growth areas," the company said in its latest earnings call.
SAP’s latest earnings data shows that the revenue was 30.9 billion euros, up 11 per cent YoY. Operating profits came in a little over 8 billion euros, down two per cent YoY. Expected operating profits for 2023 to increase by 10 to 13 per cent.
SAP software is used by organisations of all sizes, across various industries, to manage their financials, logistics, human resources, and other business operations.
SAP also offers other software products like SAP S/4HANA, a real-time enterprise resource planning suite for digital business; SAP Ariba, a cloud-based procurement software; and SAP SuccessFactors, a cloud-based human capital management software.
In recent years, SAP has been focusing on the transition to the cloud, offering its software products as cloud-based services. The company also provides a range of services, such as implementation, training, and support, to help customers in the transition to its software.
Based in Walldorf, Baden-Württemberg, Germany with offices in more than 180 countries, SAP is considered one of the leading enterprise software companies in the world.