SAP allocated €2 billion for restructuring and development in the field of AI – Kommersant
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German software developer SAP announced large-scale restructuring, which will begin this year and will affect about 8 thousand jobs. The goal is to expand work on strategic growth areas and especially on the development of artificial intelligence (AI) technologies. According to the company’s preliminary estimates, the restructuring program will require about €2 billion.
According to SAP management’s plans, most employees whose jobs will be affected by the restructuring will be retrained and will be able to work in new places within the company, primarily those that correspond to SAP’s new priorities in the field of AI. The remaining employees will be offered to resign under special conditions. SAP management expects that by the end of 2024 the number of company employees will remain at approximately the same level as now—about 107 thousand. According to SAP estimates, the restructuring will improve operational efficiency, including through organizational synergy. It is expected that in 2025 the company’s total revenue will exceed €37.5 billion, revenue from the cloud technology business will exceed €21.5 billion, and operating profit will be about €10 billion.
On the eve of SAP published financial results 2023. Revenue grew by 6% to €31.2 billion; revenue from the cloud technology department grew by 20%, to €13.7 billion; earnings per share rose 10% to €3.08. SAP shares on the Frankfurt stock exchange react to the company’s news with an increase of 6.15%. Over the past 12 months, their growth has exceeded 48%.
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