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The Walldorf-based software firm said that it expects to exit 2024 at a headcount similar to its current level.
German software giant SAP has announced a major restructuring plan that will affect around 8,000 employees as it focuses its attention on AI this year.
The company headquartered in Walldorf, Germany said that it intends to “transform” its operational setup in 2024 by leveraging “AI-driven efficiencies” to ensure future growth.
“To this end and to ensure that SAP’s skillset and resources continue to meet future business needs, SAP plans to execute a company-wide restructuring programme in 2024,” SAP wrote in a statement yesterday (23 January).
“The majority of the approximately 8,000 affected positions is expected to be covered by voluntary leave programs and internal reskilling measures. Reflecting re-investments into strategic growth areas, SAP expects to exit 2024 at a headcount similar to current levels.”
SAP said that it expects the restructuring – including retraining employees with AI skills while replacing others through voluntary redundancy programmes – to cost the company around €2bn initially, a major chunk of which will be incurred in the first half of this year.
Shares of the company reportedly shot up in the aftermath of the announcement as it forecasts strong growth in cloud revenue.
Earlier this month, the company agreed to pay more than $220m to settle US investigations into alleged bribery actions.
The US Department of Justice and the Securities and Exchange Commission said SAP and co-conspirators made bribe payments to officials in South Africa and Indonesia in the form of cash payments, political contributions, wire transfers and luxury goods purchased during shopping trips.
“SAP has accepted responsibility for corrupt practices that hurt honest businesses engaging in global commerce,” US attorney Jessica Aber said at the time.
“We will continue to vigorously prosecute bribery cases to protect domestic companies that follow the law while participating in the international marketplace.”
Last September, SAP announced the acquisition of German start-up LeanIX to improve its ability to help companies modernise their software stacks more quickly. SAP completed the acquisition in November.
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