German software giant SAP has announced an expansion of its workforce reduction plan, with up to 10,000 jobs set to be cut instead of the initially planned 8,000. The company, based in Walldorf, Germany, is responding to employees’ willingness to accept redundancy as part of its restructuring program.
Despite the challenging economic climate, SAP saw a 10% increase in revenue in the second quarter, reaching €8.29 billion. The company’s operating result surpassed expectations, with earnings before interest, taxes, depreciation, and amortization (EBITDA) rising by 33% to €1.94 billion.
While net profit declined by 69% to €918 million due to exceptional circumstances, SAP remains optimistic about its future. The company is focused on artificial intelligence (AI) as a key growth area and has confirmed its forecast for the year 2024.
With the job reduction program set to achieve additional cost savings, SAP expects to drive €0.2 billion in operating income in 2025. The revenue outlook for the upcoming year remains steady, reflecting the company’s commitment to navigating the evolving business landscape.
