German software giant SAP said on Thursday it planned to cut around 3,000 jobs this year, joining a wave of layoffs across the global tech sector.
The Waldorf-based conglomerate, which provides legacy software and cloud-based computing services, said it planned to undertake a “targeted restructuring program” to “strengthen its core business” and improve efficiency.
“This program is expected to affect approximately 2.5 percent of SAP’s workforce,” said an earnings report revealing full-year results for 2022.
SAP has a workforce of around 120,000 employees worldwide, which means it plans to shed around 3,000 jobs.
The move follows similar cuts announced by tech giants Meta, Amazon, Google, IBM and Microsoft, a once-impenetrable sector girth to the economic downturn.
SAP said its job losses would cost the company 250 to 300 million euros, mainly in the first quarter of 2023.
SAP said the restructuring is expected to generate annual savings of 300-350 million euros from 2024, “which will help boost investment in strategic growth areas”.
SAP also said it would explore the sale of its Qualtrix subsidiary, which specializes in online market research software.
A sale would further allow SAP to focus more on its core cloud business, it said.
For the whole of 2022, SAP announced revenue of 30.9 billion euros, up 11 percent from a year earlier.
Operating profit came in at just over 8 billion euros, down two percent compared to 2021.
For 2023, SAP expects operating profit growth of 10 to 13 percent.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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