Business software company SAP said on Tuesday it would undertake a company-wide restructuring as it presses ahead with its business transformation, stressing its ambition to more than triple its cloud business by 2023.

Europe's most valuable technology company said it would take restructuring charges of 800-950 million euros, mainly in the first quarter and saw cost benefits of 750-850 million from 2020. Shares sank 2 percent in early deals on Tuesday.

The company will reassign some employees and offer early retirement to others, but expects its overall head count to be higher at the end of this year, CFO Luka Mucic told reporters on a call.

"This is not a cost-cutting program — it's a fitness program and a simplification," said Mucic.