SAP Layoff: After Google, Microsoft, the sword of retrenchment on SAP employees, 3,000 people were out, the company gave this reason
SAP layoffs: Germany’s technology company SAP has decided to lay off 3,000 of its employees. The company says that it wants to focus on its core business. With this, the company will save about 30-35 crore euros next year.
Highlights
- Earlier, Google, Microsoft, and Amazon had announced layoffs.
- Together, the three companies have laid off around 40,000 people.
- Many companies in India are doing layoffs on a large scale.
New Delhi. Another tech company has joined the list of layoffs. Germany’s SAP has announced the evacuation of 3,000 employees. This is 2.5 percent of its total workforce. The company says that it is doing this to cut costs and focus on the cloud business. According to SAP, it wants to strengthen its core business and in view of this, it has created a targeted restructuring program. Significantly, during restructuring in any company, layoffs are usually done.
With this announcement, SAP has also joined the list of tech giants of the world who have recently laid off more than 40,000 employees. This includes some of the biggest companies in the world like Google, Microsoft, and Amazon. Google has announced the removal of 12,000 people, Microsoft 10,000, and Amazon 18,000 people.
Statement of CFO of SAP
Company’s Chief Financial Officer (CFO) Luca Motsche has said that this step will help the company to 30-35 million euros in 2024. This will encourage growth in strategically important areas. Actually, the company is trying to focus on the cloud business and one of the major reasons for this is that recently its revenue from this area has increased by 30 percent. Since then, taking the decision of restructuring, the company has made up its mind to retrench. The company will lay off more than 200 employees in Germany. Its headquarter is in Germany only.
SAP will sell a stake in another company
SAP bought a company named Qualtrics in 2018 by spending around $8 billion. It was made public in 2021 and then its valuation was estimated at $ 21 billion. But now amid fears of a slowdown, the market valuation of this company has come down to $7 billion. SAP has started preparing to sell its stake in this company as well. SAP has 71 percent shares of this company. Motsech has said that this move will bring huge one-time benefits to the company.
