SAP Is The Next Big Name To Announce Layoffs, Will Let Go Of 3,000 Workers Worldwide In 2023
German software giant SAP has become the latest to join the likes of Meta, Twitter, Amazon and Google to lay off its employees.
SAP on Thursday said it planned to cut some 3,000 jobs this year, accounting for nearly 2.5 per cent of its global workforce.
Focus on core business
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.
"The programme is expected to affect approximately 2.5 per cent of SAP's employees," it said in an earnings report unveiling full-year results for 2022.
SAP said its jobs cull would cost the company between 250 and 300 million euros ($270-330 million), mainly in the first quarter of 2023.
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.
SAP to sell subsidiary?
SAP also said it would explore a sale of its Qualtrics subsidiary, which specialises in online market research software.
It said that a sale would further allow SAP to focus more on its core cloud business.
The company has not specified where all the job cuts will take place.
SAP has over 8,500 employees across five cities in India - Bengaluru, Gurgaon, Mumbai, Hyderabad, and Pune.
IBM announces layoffs
On Wednesday, US tech company IBM said it was slashing about 3,900 jobs.
IBM said the layoffs were happening as it is spinning off its tech services unit and selling its health services unit and asserted that it was not linked to revenues.
Bleeding tech jobs worldwide
The announcements come at a time when some of the biggest names in the business are cutting down on their workforce in an attempt to save costs ahead of a predicted recession.
In November, Facebook's parent company Meta became the first big tech company to lay off its staff.
The social media giant had let go of close to 11000 employees, its biggest job cuts to date.
Twitter, under Elon Musk, also fired more than half of its employees.
Recently Amazon and Microsoft also announced massive job cuts, and the total number of people the tech giants have laid off is said to be around 28,000.
Google had also recently laid off some 12,000 employees, making it one of the most uncertain times for the tech industry.
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