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Restructuring: SAP now intends to cut up to 10,000 jobs
Restructuring: SAP now intends to cut up to 10,000 jobs
The German software giant SAP is planning a far-reaching restructuring that could affect up to 10,000 positions. As the company announced at a press conference, the measure is intended to increase efficiency and prepare SAP for future challenges. This news has hit both the workforce and industry hard and has triggered numerous reactions.
The restructuring is part of a strategic realignment that the company has been pursuing since the beginning of the year. The goal is to strengthen innovation and expand market leadership in the areas of cloud computing and artificial intelligence. SAP CEO Christian Klein explained that the necessity for restructuring arises from changing market conditions. “To remain competitive in the long term, we must adapt to the dynamic changes,” Klein said.
A key focus of the restructuring is the realignment of business units. Certain departments and functions are to be merged, while others will be outsourced or completely phased out. “We are looking for ways to optimize our resource allocation,” Klein continued. “In some areas, we have overcapacities that need to be reduced.” The planned job cuts are to be implemented gradually by the end of next year.
The news of the job cuts has understandably caused concern among employees. The works council sharply criticized the plans and demanded an immediate meeting with the company's management. “The planned cuts are a hard blow for the workforce,” said works council chief Michael Schröder. “We expect significant concessions in the negotiations and will hold the company accountable to find socially compatible solutions.”
Criticism also came from politics and unions. For instance, Jörg Hofmann, chairman of the IG Metall union, expressed skepticism about the plans: “SAP, as one of the largest employers in the IT sector, has a great responsibility.
``` "These drastic measures not only threaten livelihoods but could also impair the company's ability to innovate." On the other hand, there are also voices emphasizing the necessity of restructuring. In particular, analysts and market observers see the drastic steps as a necessary act to survive in an increasingly competitive market environment. "Cloud computing and artificial intelligence are the future of the IT industry," says analyst Thomas Langer from Bankhaus Metzler. "SAP needs to reinvent itself to avoid falling behind the competition."
A look at the numbers shows the urgency of the measures. Although SAP recorded solid growth in the last business year, profits declined. The traditional software division, in particular, is struggling with stagnant sales. In contrast, the cloud computing business is growing rapidly—however, competitive pressure is significantly higher here.
The company's management emphasized that the restructuring involves not only job cuts, but also investments in promising business areas. Significant funds are to be invested in research and development, particularly in the fields of machine learning and big data. "We are investing in the technologies of tomorrow," said Klein. "This is not just a cost-cutting measure, but a strategic realignment.”
How exactly the affected employees will be supported is still unclear. Klein promised that a social plan would be developed to cushion as many hardships as possible. The coming weeks and months are likely to be turbulent for SAP and its workforce. However, the announced measures clearly show that the company wants to radically align itself for the future.
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