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SAP is restructuring 8,000 jobs to focus on AI, some employees could be asked to leave
By - 26 Jan 2024 08:53 PM
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SAP has unveiled a major restructuring plan, affecting 8,000 jobs, as it is now preparing for the era of Artificial Intelligence (AI). This transformative move, backed by a substantial €2 billion (around Rs 18,000 crore) investment, highlights SAP's commitment to positioning itself for future growth in the dynamic tech landscape, the company said in a blog post. SAP has unveiled a major restructuring plan, affecting 8,000 jobs, as it is now preparing for the era of Artificial Intelligence (AI). This transformative move, backed by a substantial €2 billion (around Rs 18,000 crore) investment, highlights SAP's commitment to positioning itself for future growth in the dynamic tech landscape, the company said in a blog post. The software company's CEO Christian Klein explained the importance of this strategic transformation, describing it as the next chapter for SAP. The German enterprise software giant aims to steer its focus towards Business AI, signaling a notable shift in its investment priorities. Klein expressed confidence in the company's prospects, particularly in the year 2024.Of SAP's extensive workforce of 108,000 employees, more than 7 percent will feel the impact of this restructuring. To manage these changes, SAP clarified that the majority of the approximately 8,000 affected positions are expected to be addressed through voluntary leave programs and internal re-skilling initiatives. The voluntary program suggests that some of the employees could be asked to leave internally, which won't be labelled as layoff, something that Amazon was also reported to be doing. The company wants to end 2024 with a workforce size comparable to its current levels after implementing reinvestments. |
