{"id":522667,"date":"2024-01-24T08:16:09","date_gmt":"2024-01-24T06:16:09","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=522667"},"modified":"2024-01-24T08:26:54","modified_gmt":"2024-01-24T06:26:54","slug":"sap-restructuring-will-impact-8000-jobs","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/software\/522667-sap-restructuring-will-impact-8000-jobs.html","title":{"rendered":"SAP restructuring will impact 8,000 jobs"},"content":{"rendered":"

SAP SE is planning a restructuring that will affect about 8,000 jobs and increase the German software maker\u2019s focus on artificial intelligence.<\/p>\n

The company projected that operating profit would rise to roughly \u20ac10 billion (R206.62 billion) next year as result.<\/p>\n

As part of the restructuring this year, SAP said it will increase its focus on strategic growth areas, particularly \u201cbusiness AI,\u201d and identify \u201cAI-driven efficiencies\u201d in its operations.<\/p>\n

The company didn\u2019t immediately respond to a request for comment on how many people will lose their jobs.<\/p>\n

It said in a filing late Tuesday that it plans to end 2024 with a headcount that\u2019s similar to current levels because of \u201cre-investments\u201d in other areas.<\/p>\n

SAP, Europe\u2019s biggest software company, has spent the past few years transitioning its enterprise business to cloud subscriptions, shifting away from traditional licensing models.<\/p>\n

In May, SAP\u00a0announced<\/a><\/strong>\u00a0a partnership with Google\u2019s cloud computing unit that it said would allow clients to more easily unite data from disparate sources and use AI to improve their operations.<\/p>\n

The company, along with its software rivals, is working to incorporate AI tools into virtually all of its product offerings.<\/p>\n

The restructuring will ensure that the company\u2019s \u201cresources continue to meet future business needs,\u201d SAP said in its statement.<\/p>\n

The majority of positions affected will be covered by voluntary leave programs and internal \u201cre-skilling measures,\u201d the filing shows. Full-time workers at the company totaled 107,602 as of Dec. 31.<\/p>\n

Separately, SAP reported fourth-quarter non-IFRS revenue of \u20ac8.47 billion, surpassing analysts\u2019 estimates of \u20ac8.35 billion.<\/p>\n

Operating profit was \u20ac2.51 billion in the period ended Dec. 31, missing an average estimate of \u20ac2.53 billion.<\/p>\n

The Walldorf, Germany-based company projected 2024 non-IFRS operating profit of as much as \u20ac7.9 billion, an increase of 21% at constant currencies.<\/p>\n

The company\u2019s profit outlook of \u20ac10 billion for 2025 reflects a \u20ac2 billion reduction in share-based compensation expenses and \u20ac500 million in \u201cincremental\u201d gains from the restructuring.<\/p>\n","protected":false},"excerpt":{"rendered":"

Europe’s largest software company projected that operating profit would rise to roughly \u20ac10 billion (R206.62 billion) next year as result.<\/p>\n","protected":false},"author":341034,"featured_media":522669,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[19,16],"tags":[7389,12083,3042,79730,35065],"class_list":["post-522667","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-software","tag-germany","tag-job-cuts","tag-sap","tag-software-companies","tag-tech-jobs"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/522667"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=522667"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/522667\/revisions"}],"predecessor-version":[{"id":522671,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/522667\/revisions\/522671"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/522669"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=522667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=522667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=522667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}