Bengaluru: A major restructuring at German enterprise technology major SAP, aimed at accelerating AI efforts, will see as many as 8,000 roles being impacted.
CEO Christian Klein said in an email to employees that up to two-thirds of the people affected may be able to either find new roles within SAP or select voluntary programme options. “A key element of this programme will be our focus on reskilling, with an investment of ₹100-₹150 million in learning across all teams and Board areas in 2024.
We will also offer initiatives to support colleagues who are interested in transferring to new positions internally, and will share more details about this soon,” he said.
Klein’s mail said one key focus area for SAP’s future success is AI, and “this is why we have made the difficult decision to announce our intent to implement a company-wide restructuring programme.”
India is home to SAP’s largest R&D base outside Germany, employing 15,000 people. It contributes to 40% of the company’s global R&D. When TOI asked SAP about the impact on India operations, the company did not comment on the geography specifically. But its spokesperson said the global macroeconomic landscape remains volatile, with AI driving seismic change in the technology sector. The spokesperson said they’ll ensure a socially responsible approach to the restructuring. “People would be accommodated through reassignment to new areas and through voluntary programmes, including early retirement options. Discussions have already started with social partners to find the most respectful, socially acceptable approach. However, SAP will continue to re-invest in strategic growth areas and expects to exit 2024 with a headcount similar to the current level,” the statement said.
SAP said its restructuring expenses are estimated at around 2 billion and the vast majority of it is expected to be recognised in the first half of the year, impacting operating profit.
The article originally appeared on Times of India.