German software giant SAP is reducing its workforce by approximately 2.5%, which will affect 3 000 employees, as it announces a restructuring programme.
SAP is expecting to spend over R5 billion on the restructuring exercise, as it seeks to focus on strategic growth areas by aligning its operating models and go-to-market approach with its accelerated cloud transformation.
The company released its fourth quarter 2022 statement today, revealing the job cuts planned for this year.
“In 2023, SAP will conduct a targeted restructuring programme in selected areas of the company. Furthermore, SAP intends to strengthen its core business and improve overall process efficiency. The programme is expected to affect approximately 2.5% of SAP’s employees,” the statement reads.
“The vast majority of the €250 million (R4 billion) to €300 million (R5 billion) restructuring costs associated with the programme is expected to be recognised in the first quarter 2023, impacting IFRS operating profit, which will help to fuel investments into strategic growth areas.”
SAP is now part of a bulging list of tech firms that have announced wide-scale layoffs, affecting thousands of people across the world.
This week, Naspers and its Amsterdam-listed Prosus unit revealed they will shrink their workforce by 30%. Computing giant IBM also announced it is looking to lay off 3 900 employees. SA-born global crypto-currency firm Luno will cut its staff complement by 35%.
In the past several months, global tech giants Amazon, Meta, Twitter and Salesforce also began culling jobs. The companies cited the uncertain economy as the reason for the layoffs, saying they are prioritising the long-term health of their businesses.