German software giant SAP to cut 3,000 jobs as revenue jumps 11 per cent YoY

The German multinational software corporation SAP (Systems, Applications, and Products in Data Processing) has revealed plans to lay off about 3,000 employees worldwide. This is part of SAP’s larger transformation plan which is aimed at reducing costs and improving the company’s profitability.

"The programme is expected to affect approximately 2.5 per cent of SAP's employees. The restructuring is expected to lead to annual savings of 300-350 million euros from 2024, which will help to fuel investments into strategic growth areas," the company said in its latest earnings call.

SAP’s latest earnings data shows that the revenue was 30.9 billion euros, up 11 per cent YoY. Operating profits came in a little over 8 billion euros, down two per cent YoY. Expected operating profits for 2023 to increase by 10 to 13 per cent.

Many tech giants and multinationals across the world have been on a firing spree recently with companies like Amazon, IBM, Microsoft and Google trimming their workforce.

The company is known for its ERP (Enterprise Resource Planning) software. It is a suite of business applications that integrate with a company's backend systems, such as financials, logistics, and human resources, to give a unified view of business operations. The software is used to manage a company's business processes in a unified system.

SAP software is used by organizations of all sizes, across various industries, to manage their financials, logistics, human resources, and other business operations. 

Also read: Apple has so far avoided mass layoffs unlike Google and Microsoft, but why

SAP also offers other software products like SAP S/4HANA, a real-time enterprise resource planning suite for digital business; SAP Ariba, a cloud-based procurement software; and SAP SuccessFactors, a cloud-based human capital management software.

In recent years, SAP has been focusing on the transition to the cloud, offering its software products as cloud-based services. The company also provides a range of services, such as implementation, training, and support, to help customers in the transition to its software.

SAP is considered one of the leading enterprise software companies in the world. It is headquartered in Walldorf, Baden-Württemberg, Germany, and has offices in more than 180 countries.

Also Read

Google planning to challenge ChatGPT with over 20 new AI innovations in 2023

As Netflix’s Reed Hastings steps down, meet the two new CEOs replacing him