Dismantling program - SAP will cut more jobs - up to 10,000
Europe's largest software manufacturer SAP is expanding its layoff program due to the readiness of many employees. The company plans to significantly reduce costs starting next year. Instead of reducing 8,000 jobs, as previously planned, SAP now intends to reduce between 9,000 and 10,000 current jobs, as Walldorf announced on Monday evening after the US stock market close. At the end of the second quarter, there were 105,315 positions - and thus almost 3,000 fewer than at the end of the first quarter.
In the following, SAP raised its forecast for the adjusted earnings before interest and taxes (EBIT) for the coming year by 0.2 billion euros and aims to generate operative revenues of around 10.2 billion euros in 2025. So far, SAP has estimated the cost savings from layoffs at around 500 million euros. To be able to cut more jobs, SAP returned an additional 0.6 billion euros in the second quarter.
The management confirmed the forecast for the current year and the revenue expectations for 2025 remain unchanged. The papers traded in the US related to the Dax-conglomerate gained approximately 4% in follow-up trading.
- Despite the expansion of its layoff program, SAP, a prominent software company based in Walldorf, Germany, situated in the state of Baden-Württemberg, is optimistic about its future earnings and revenue prospects in Europe.
- The layoff program at SAP, which is impacting companies across Europe, is expected to generate significant cost savings, with initial estimates reaching approximately 500 million euros, according to the company.
- SAP, a key player in the European technology sector and Europe's largest software manufacturer, announced its intention to further decrease its workforce by between 9,000 and 10,000 positions, surpassing the previously planned 8,000 job cuts.
