Anjali Sharma
GG News Bureau
NEW YORK, 26th Jan. Cloud software major SAP on Thursday has announced that a company-wide restructuring programme in 2024 that will affect 8,000 jobs, according to a statement issued by the company.
The majority of 8,000 affected positions is expected to be covered by voluntary leave programmes and internal re-skilling measures, the statement said.
SAP had 108,000 full-time employees at the end of 2023 and the restructuring will affect over 7 per cent of its workforce.
The company said that it is reflecting re-investments into strategic growth areas, SAP said it expects to exit 2024 at a headcount similar to current levels.
SAP expects 10 billion euros ($10.85 billion) in 2025 adjusted operating profit which reflects share-based compensation expenses of approximately 2 billion euros.
“Restructuring expenses are preliminarily projected at around 2 billion euros, the vast majority of which is expected to be recognised in the first half of 2024,” the company said.
It added that 2024 outlook and 2025 ambition for free cash flow assume all payouts associated with the planned restructuring programme will be completed in 2024.
SAP said it expect Cloud revenue of more than 21.5 billion euros and total revenue of more than 37.5 billion euros.
In 2024, SAP will increase its focus on key strategic growth areas, in particular Business AI.
It intends to transform its operational setup to capture organizational synergies, AI-driven efficiencies and to prepare the company for highly scalable future revenue growth.
