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SAP unveils $2 billion euro ‘restructuring plan’, 8000 employees to be impacted. Details
The Germany-based software major, however, said it expects to end the year at a headcount ‘similar to the current levels.’
Germany-based software major SAP SE has unveiled a 2 billion euro ($2.17 billion) company-wide transformation programme, including restructuring, for 2024, with the aim being to improve its focus on growth in artificial intelligence (AI)-related areas.
From this amount, more than $1 billion will be invested in generative AI, and the company will open a new tab in AI-powered technology startups, doing so via Sapphire Ventures, its enterprise capital firm.
Here's all you need to know about the programme:
(1.) The ‘restructuring’ will cover around 8000 employees. Most of these positions are likely to to be covered through voluntary leaves and internal re-skilling measures.
(2.) The software giant, however, said it expects to end the year at a headcount ‘similar to the current levels.’ Currently, SAP SE has upwards of 105,000 people working for it.
(3.) The expenses incurred in carrying out this restructuring will be reflected ‘mostly in the first half of 2024, impacting operating profit,’ it added.
(4.) Excluding these expenses, the programme is expected to provide only a ‘minor’ cost benefit during the year, the software maker further stated.
(5.) According to SAP SE, the plan will ‘transform its operational setup to capture organizational synergies, AI-driven efficiencies' and prepare it for ‘highly scalable future revenue growth.’
