![\"Software](\"https:\/\/c.ndtvimg.com\/2023-01\/lm26mkf8_sap_625x300_26_January_23.jpg\"\/ "\\"Software")
<\/div>\nSAP has a workforce of around 120,000 employees worldwide. (Representational)<\/p>\n<\/div>\n
Berlin: <\/b><\/p>\n
German software giant SAP on Thursday said it planned to cut some 3,000 jobs this year, joining a wave of layoffs in the global tech sector.<\/p>\n
The Walldorf-based group, which offers both traditional software and cloud-based computing services, said it planned to carry out a “targeted restructuring programme” to “strengthen its core business” and improve efficiency.<\/p>\n
“The programme is expected to affect approximately 2.5 percent of SAP’s employees,” it said in an earnings report unveiling full-year results for 2022.<\/p>\n
SAP has a workforce of around 120,000 employees worldwide, meaning it plans to shed some 3,000 jobs.<\/p>\n
The move follows similar cuts announced by tech giants Meta, Amazon, Google, IBM and Microsoft as the once-unassailable sector girds for an economic downturn.<\/p>\n
SAP said its jobs cull would cost the company between 250 and 300 million euros, mainly in the first quarter of 2023.<\/p>\n
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”, SAP said.<\/p>\n
SAP also said it would explore a sale of its Qualtrics subsidiary, which specialises in online market research software.<\/p>\n
A sale would further allow SAP to focus more on its core cloud business, it said.<\/p>\n
For the whole of 2022, SAP announced revenues of 30.9 billion euros, up 11 percent on a year earlier.<\/p>\n
Operating profits came in at just over 8 billion euros, down two percent compared with 2021.<\/p>\n
For 2023, SAP expects operating profits to increase by 10 to 13 percent.<\/p>\n
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)<\/i><\/p>\n
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