Forced to switch to “cloud” offers, SAP will cut 2,250 jobs

by bold-lichterman

SAP wants to accelerate the cloud, as announced in January. The German-born software publisher has also reduced its operating profit target for 2017, considering that this pivot would weigh on its margins initially. But this orientation is also reflected in a billhook in the workforce: the group announced on March 6 that it would cut approximately 2,250 positions or about 3% of its workforce. SAP assures that European employees will not be subject to economic layoffs, and that this workforce reduction will include voluntary departures.

The software publisher employs around 74,400 people in 130 countries around the world. This is the second time he has announced a major downsizing plan since the group came under the leadership of Bill McDermott less than a year ago in May 2014. “We have to go where we are. is growth, ”he said. In other words, towards online storage solutions.

A profound evolution of the market which requires to adapt

SAP like other editors (Salesforce, Workday Inc, etc.) are encountering changes in usage in its market and is forced to adapt. Today, sales are made primarily on remote hosted services and no longer on the purchase of licenses as was traditionally the case. This development induces new human resources needs, hence this announcement.

The company made $ 17.56 billion last year. It is listed on the NYSE and the Frankfurt Stock Exchange. The SAP action lost 0.6% to 63.2 euros in the morning on the Frankfurt Stock Exchange. Last September, the American subsidiary of SAP had reached an agreement to acquire Concur, a company specializing in software to manage expense and travel accounts, for 8.3 billion dollars.

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