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Thousands of SAP employees get new jobs, but they are not laid off

Thousands of SAP employees get new jobs, but they are not laid off

SAP has revealed strategic restructuring plans for next year, which will include repositioning workers rather than laying them off.

in an official advertisementThe German software giant confirmed that “the majority” of the 8,000 affected positions would be covered by “internal retraining measures” or voluntary furlough programs.

At the end of 2023, SAP had around 108,000 full-time workers, meaning that the 8,000 affected positions represent just over 7% of the company's workforce.

SAP does not want to lay off workers

Last year was characterized by large-scale layoffs affecting around 262,000 tech workers worldwide (via layoffs.fyi), and the trend appears to continue through 2024, although fortunately to a lesser extent.

SAP's 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 it is a welcome change from the layoffs other companies have announced.

The company confirmed: “SAP expects to exit 2024 with a workforce similar to current levels.”

SAP said the cost of restructuring its workforce is expected to amount to around 2 billion euros ($2.2 billion), indicating the company values its workers but would prefer them to fill other positions to align. better with your goals in the future.

In recent years, SAP's focus has been on the cloud and therefore its cloud revenue has grown and will continue to grow until 2025, according to the company's projections.

By 2025, it expects revenue of 37.5 billion euros ($40.8 billion), of which around 21.5 billion euros ($23.4 billion), or about 57%, will come from its cloud business. SAP also revealed that the majority (86%) of its revenue would be considered predictable.