SAP restructure impacts 8,000 roles

Application giant SAP will be undertaking a company-wide restructuring program that will impact 8,000 roles globally.

SAP wouldn't clarify if roles would be impacted in Australia and New Zealand (A/NZ) or ASEAN.

"To ensure that SAP's organisational setup, skill set and resources continue to meet future business needs, SAP plans to undergo a company-wide restructuring program impacting 8,000 positions," an SAP spokesperson said.

"The global macroeconomic landscape remains volatile, with AI driving seismic change in the technology sector. Consequently, SAP will increase focus on strategic growth areas, especially the accelerated development and implementation of business AI [artificial intelligence] technology and scenarios."

SAP claimed it was taking a "socially responsible approach to this restructuring" and that "people would be accommodated through reassignment to new areas and through voluntary programs, including early retirement options," according to the spokesperson.

"Discussions have already started with social partners to find the most respectful, socially acceptable approach. 

"However, SAP will continue to re-invest in strategic growth areas and expects to exit 2024 with a headcount similar to current levels."

According to its fourth quarter financial report, SAP indicated restructuring expenses were preliminarily projected at around EUR2 billion, the vast majority of which is expected to be recognised in the first half of 2024.

For the full year, SAP's total revenue was up 6 per cent to EUR31.21 billion, with cloud revenue up 20 per cent to EUR13.66 billion, mainly driven by strong double-digit growth across the software-as-a-service (SaaS) and platform-as-a-service (PaaS) portfolio.

SAP S/4HANA cloud revenue was up 67 per cent to EUR3.49 billion while software licenses revenue was down 14 per cent to EUR1.77 billion.

Services revenue was up 4 per cent to EUR4.28 billion.