The German software developer for companies SAP will lay off 2.5% of its workforce, which means cutting some 3,000 jobs, as announced when presenting its 2022 accounts, when its net attributable profit fell by 56.4 %, up to 2,290 million euros.
The company has announced that in 2023 it will carry out a restructuring in selected areas with the aim of focusing on strategic growth areas, as well as strengthening its core business and improving overall efficiency. The restructuring will cost between 250 and 300 million euros, which will be accounted for in the first quarter of 2023. The idea is that the decision entails savings of 350 million per year in costs from 2024.
In this way, the cut in large technology companies makes the leap to the European continent. SAP posted net attributable profit of €2.29 billion in 2022, which corresponds to a 57% decrease compared to the previous year's result, due to the impact of the company's withdrawal from Russia and Belarus. The company entrusts its future to the cloud: between October and December, SAP's cloud revenues increased by 30%, to 3,392 million. But analysts are concerned that the business could be hit hard by cutting customer spending.
In addition to the job cut, SAP has decided to explore the sale of its stake in Qualtrics, its US analysis subsidiary, acquired in 2018 and in which it maintains a controlling stake after its IPO in 2021, in line with the strategic initiative from SAP to optimize your portfolio.
