2024-07-24 01:31:12
German software giant SAP is expanding its workforce reduction plan, according to a company announcement, quoted by DPA, BTA reported.
Instead of the previously planned 8,000, the SAP announced last night that between 9,000 and 10,000 of the current jobs would be affected.
The software giant, based in the southwestern German city of Waldorf, had 105,315 employees at the end of the second quarter, about 3,000 fewer than the previous quarter.
SAP has stepped up its focus on artificial intelligence (AI) as a key growth area, and in January announced a restructuring program.
Despite the difficult economic situation, the company’s operating profit in the second quarter grew by more than expected.
The company posted earnings before interest, taxes, depreciation and amortization (EBITDA) up 33 percent year-on-year to 1.94 billion euros ($2.11 billion), it said.
Revenue for the quarter rose 10 percent to 8.29 billion euros, compared with 7.55 billion euros last year.
The company also confirmed its forecast for 2024.
Thanks to the expansion of its job-cutting program and the associated increase in savings, the German company expects to achieve an additional 0.2 billion euros in operating income next year.