German software giant SAP said Thursday it planned to cut some 3,000 jobs this year, joining a wave of layoffs in the global technology sector.
The Walldorf-based group, which offers both traditional software and cloud-based computing services, said it planned to implement a “targeted restructuring program” to “strengthen its core business” and improve efficiency.
“The program is expected to affect about 2.5 percent of SAP employees,” it said in an earnings report revealing full-year results for 2022.
SAP employs about 120,000 people worldwide, which means it plans to cut about 3,000 jobs.
The move follows similar cuts announced by technology giants Meta, Amazon, Google, IBM and Microsoft as the once-untouchable sector prepares for an economic downturn.
SAP said job cuts would cost the company between 250 and 300 million euros, mainly in the first quarter of 2023.
The restructuring is expected to lead to annual savings of €300-350 million from 2024, “which will help fuel investment in strategic growth areas,” SAP said.
SAP also said it would investigate the sale of its subsidiary Qualtrics, which specializes in online market research software.
A sale would further allow SAP to focus more on its core cloud business, the company said.
For the whole of 2022, SAP announced a turnover of 30.9 billion euros, 11 percent more than a year earlier.
The operating result amounted to just over 8 billion euros, a decrease of two percent compared to 2021.
For 2023, SAP expects operating profit to increase by 10 to 13 percent.
(Except for the headline, this story has not been edited by NDTV staff and is being published from a syndicated feed.)
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