

Enterprise solutions developed by the German software giant, SAP continue to be used globally in many different areas of business operations. As SAP tries to transform into a modern cloud company, it is restructuring its workforce and aims to spend 950 million Euros on this restructuring.

In doing so, SAP estimates that it will lay off around 4,400 workers. This is the second major overhaul of the workforce by SAP. The previous such drive planned in 2015 had resulted in 3,000 job cuts.

SAP has tried to make the announcement as positive as possible. In a press conference, SAP’s CEO Bill McDermott said, “We are going to move our people and our focus to the areas where the new economy needs SAP the most: artificial intelligence, deep machine learning, IoT, blockchain and quantum computing.”

The company’s CFO Luka Mucic mentioned that the move is not about cost cutting. SAP wants to ensure that it has a long-term competitive advantage, which is why the company is following this path of restructuring.

Despite these job cuts, the company plans to hire more employees this year. In the press conference, CEO McDermott mentioned that every dollar gained from restructuring will be put back into the workforce and SAP will create more jobs.

SAP is in the middle of a product portfolio transformation to meet the demands of the 21st century customer. The executives also stressed upon the severance package that SAP will offer to any employees that end up leaving the company.

The restructuring announcement comes at a time when SAP reported improved net profit to 4.1 billion euros, the underlying profits have surged by 17%, reaching 5.7 billion euros. Revenue from cloud subscriptions and support also touched 3.8 billion euros.

continue to be quite popular among developers as global enterprises rely on SAP software to deliver for them cost and operational efficiencies.