SAP Restructuring to Impact 8,000 Workers

SAP is initiating a restructuring plan that will impact about 8,000 of its workers through buyouts or job changes. However, a sizable staff reduction isn’t expected.

SAP’s workforce totaled around 108,000 at the end of 2023, therefore the restructuring will impact more than 7% of its employees.

The SAP restructuring is part of an increase in focus on key strategic growth areas, in particular business artificial intelligence (AI), the company said. It also plans to transform its operational setup to “capture organizational synergies, AI-driven efficiencies and to prepare the company for highly scalable future revenue growth.”

SAP Restructuring to Meet Future Business Needs

“To this end and to ensure that SAP’s skill set and resources continue to meet future business needs, SAP plans to execute a company-wide restructuring program in 2024,” the company said. “The majority of the approximately 8,000 affected positions is expected to be covered by voluntary leave programs and internal reskilling measures. Reflecting reinvestments into strategic growth areas, SAP expects to exit 2024 at a headcount similar to current levels.”

A year ago, SAP said it was eliminating 3,000 jobs, amounting to 2.5% of its workforce. Those layoffs resulted from SAP’s consolidation around its S/4 HANA and Business Technology Platform (BTP).

For its fiscal 2023 that ended Dec. 31, SAP reported a 6% increase in total revenue. 

SAP's Dominik Asam

Dominik Asam, SAP’s chief financial officer, said this year the company will focus on “putting the right gradient of earnings growth in place to deliver on our raised ambition for 2025, and sustain growth and financial performance beyond."