Daisy Watts
Jan 24, 2024
In line with its aim to focus on growth in the artificial intelligence (AI)-based business areas, German software company SAP SE on Tuesday disclosed its €2 billion ($2.17 billion) "restructuring plan" covering 8,000 roles.
The software firm vowed to invest more than $1 billion as it expects generative AI to fundamentally change its business. It also plans to open a new tab in AI-powered technology startups via its enterprise capital firm Sapphire Ventures.
It was learnt that the company’s restructuring programme would be implemented majorly through voluntary leave programmes and internal re-skilling measures.
The company said that it expects to exit 2024 with a headcount "similar to the current levels." According to SAP’s website, the company has more than 105,000 employees at present.
“The restructuring expenses would reflect mostly in the first half of 2024, impacting operating profit,” the company said.
The business software maker also forecasted 2024 cloud revenue at €17 billion to €17.3 billion and updated its 2025 outlook forecasting adjusted cloud gross profit of approximately €16.2 billion.
Its key cloud business revenue at 2023 end came in at €13.66 billion, falling short of its forecast of €14.06 billion. The software firm had previously missed analyst expectations for cloud revenues in the third quarter.
