SAP Announces 2 bn Euro Reconstruction Plan, AI Push
German software company SAP has announced a $2.17 billion restructuring plan, affecting 8,000 positions.
The move aims to focus on AI-driven business sectors and will be implemented through voluntary leave schemes and internal re-skilling measures. SAP expects to exit 2024 with a headcount similar to its current levels.
The restructuring expenses are expected to impact operating profit, with most reflecting in the first half of 2024. The company plans to invest over $1 billion through its AI-powered technology start-up Sapphire Ventures. SAP also projected 2024 cloud revenue between 17 and 17.3 billion euros and an adjusted cloud gross profit of approximately 16.2 billion euros.
(With inputs from Shikha Singh)
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