SAP, a German software company, is undergoing a transformation program worth $2.2 billion to introduce AI, cut costs, and restructure employees. Around 8,000 employees, or 7% of the workforce, will be affected but won't lose their jobs. Instead, they will have the option of voluntary redundancy and retraining. SAP aims to achieve an operating profit of $10.9 billion by 2025. The company has invested $1 billion in AI-focused enterprise startups and is aligning with major tech players like Google and Microsoft in adapting workforce strategies to AI advancements.
Artificial intelligence (AI) has become one of the common reasons behind so many
job cuts
lately. The German software company,
SAP
is also undergoing some reformation within the company as a part of a “transformation program”. This program has a net worth of $2.2 billion and it is aimed at introducing
AI
within the company and also cut some costs.
Business Insider has reported that the transformation comes due to the rapid rise of artificial intelligence and it is set to affect the jobs of around 8,000 employees in the company. However, the news mentions that SAP is not cutting jobs here as it aims to restructure these employees instead.
People won’t lose their jobs as a part of this new transformation
According to the report, the company has around 107,600 employees and this new "
transformation program
" is set to affect around 7% of them. Report mentioned that while they won’t be losing their jobs, they will be asked to choose voluntary redundancy and some of them will be retrained.
Why this is happening
SAP is known for providing cloud-based solutions and products. The company has said that the changes are necessary to “ensure that SAP's skills and resources continue to meet future business needs."
The company has further hinted that the people won’t lose their jobs as a part of this, and there will be new jobs in crucial areas.
The company has aimed to achieve an operating profit of around $10.9 billion by 2025, as a part of the
restructuring
.
SAP has actively pursued the integration of artificial intelligence (AI) solutions into its product offerings, committing around $1 billion in investments towards AI-focused enterprise startups. This move aligns SAP with major tech players such as Google and Microsoft, all of whom are adapting their workforce strategies in response to the rapid advancement of AI technologies.
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