Thousands of SAP employees are getting new jobs - but they aren't being fired

Date:
Wed, 24 Jan 2024 12:01:29 +0000

Description:
Around 8,000 SAP workers will either be found other roles or will voluntarily leave, leaving headcount largely unaffected.

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SAP has unveiled strategic restructuring plans for the year ahead, which will include repositioning workers instead of firing them.

In an official announcement , the German software giant confirmed that the majority of the 8,000 affected roles would be covered either by internal re-skilling measures or voluntary leave programs.

At the end of 2023, SAP had around 108,000 full-time workers, meaning that
the 8,000 affected positions account for just over 7% of the companys headcount. SAP doesnt want to lay off workers

Last year was characterized by wide-scale layoffs affecting around 262,000 tech workers globally (via layoffs.fyi ), and the trend looks to be
continuing into 2024, though to a lesser degree, thankfully.

SAPs decision to put 8,000 workers under the spotlight is clearly a response to changing market trends and an economy that has been slow to recover, but its a welcome change to the redundancies that have been announced by other companies.

The company confirmed: SAP expects to exit 2024 at a headcount similar to current levels.

SAP said that the cost to restructure its workforce is expected to total around 2 billion ($2.2 billion), indicating that the company values its workers but would prefer them to fulfill other positions to better align with its goals moving forward.

The past few years have seen SAPs attention turn to the cloud, and thus its cloud revenue has grown and continues to grow into 2025, according to company projections.

By 2025, it expects a revenue of 37.5 billion ($40.8 billion), with around 21.5 billion ($23.4 billion), or around 57%, coming from its cloud business. SAP also revealed that the majority (86%) of its revenue would be considered predictable. More from TechRadar Pro Ready for a career change? Here are the best job sites and the best recruitment platforms Check out our roundup of
the best productivity apps Google CEO says more layoffs are coming soon



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Link to news story: https://www.techradar.com/pro/thousands-of-sap-employees-are-getting-new-jobs- but-they-arent-being-fired


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