8,000 jobs to be affected by cloud software major SAP’s restructuring plan
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New Delhi (Uttam Hindu News): Cloud software major SAP has announced a company-wide restructuring program in 2024 that will affect around 8,000 positions. The majority of the approximately 8,000 affected positions are expected to be covered by a voluntary leave program and internal reskilling measures, the company said in a statement. SAP had about 108,000 full-time employees at the end of 2023 and the restructuring will affect more than 7 percent of its workforce.
SAP expects adjusted operating profit of 10 billion euros ($10.85 billion) in 2025, reflecting share-based compensation expenses of about 2 billion euros.
“Restructuring expenses are initially estimated at approximately 2 billion euros, the bulk of which is expected to be recognized in the first half of 2024,” the company said.
Furthermore, the 2024 outlook and 2025 ambition for free cash flow assume that all payments associated with the planned restructuring program will be completed in 2024.
SAP said it expects cloud revenue of more than 21.5 billion euros and total revenue of more than 37.5 billion euros.
In 2024, SAP will further increase its focus on key strategic growth areas, especially Business AI.
It also intends to transform its operational setup to achieve organizational synergy, AI-driven efficiencies and prepare the company for highly scalable future revenue growth.
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