German multinational software company SAP SE said a company-wide restructuring programme will impact 8,000 positions, saying the implementation of business AI technology and a volatile global macroeconomic landscape were the reasons for the rejig.
"To ensure that SAP’s organizational setup, skill set, and resources continue to meet future business needs, SAP plans to undergo a company-wide restructuring program impacting 8,000 positions," the company said in a statement.
SAP will increase focus on strategic growth areas, especially the accelerated development and implementation of Business AI technology and scenarios, the company said.
SAP said the affected workforce would be accommodated through reassignment to new areas and through voluntary programs, including early retirement options.
"Discussions have already started with social partners to find the most respectful, socially acceptable approach," the company said.
SAP expects to exit 2024 with a headcount similar to current levels. The software major will continue to re-invest in strategic growth areas such as AI, it said.
The technology industry is witnessing a wave of layoffs as companies develop and deploy AI-led solutions.
According to data from Layoffs.fyi, a layoff-tracking website, 21,370 employees have been let go by 76 tech companies in 2024.
Also read: Tech employees face brutal start to 2024 as layoffs continue
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
