A sign reading “SAP” hangs on the headquarters of the software company SAP. Uwe Anspach/dpa
German software giant SAP is expanding its job cut plans after many employees said they were willing to accept redundancies.
The company announced Monday evening that between 9,000 and 10,000 of its current jobs would be affected, rather than the 8,000 jobs originally planned.
The company, based in Walldorf in southwest Germany, had 105,315 employees at the end of the second quarter, down about 3,000 from the previous quarter.
SAP has stepped up its focus on artificial intelligence (AI) as a key growth area and announced restructuring plans in January.
Despite the tough economic climate, the company’s second-quarter operating profit rose more than expected.
The company said earnings before interest, taxes, depreciation and amortization (EBITDA) rose 33 percent from a year earlier to 1.94 billion euros ($2.11 billion).
Revenues for the quarter increased 10% to EUR 8.29 billion from EUR 7.55 billion in the same period last year.
Net profit for the second quarter fell 69% to €918 million, mainly due to additional income from the sale of US subsidiary Qualtrics in the same period last year.
The company confirmed its 2024 forecast.
SAP expects its operating profit to increase by a further 200 million euros in 2025 due to an expanded workforce reduction program and associated increased cost savings.
There is no change to the earnings outlook for next fiscal year.
