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SAP will cut 8,000 jobs worldwide in its commitment to AI

The German company earned 167% more in 2023, up to 6,103 million euros.

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SAP will cut 8,000 jobs worldwide in its commitment to AI

The German company earned 167% more in 2023, up to 6,103 million euros

MADRID, 24 Ene. (EUROPA PRESS) -

The German business software developer SAP will carry out a restructuring in 2024 that will affect around 8,000 employees worldwide, 7.4% of the workforce, the multinational has announced, which in 2023 achieved an attributed net profit of 6,103 million euros, 167% above the result recorded a year earlier.

The company has announced that in 2024 it intends to further increase its focus on key strategic growth areas, particularly enterprise AI, as well as transform its operational setup to capture organizational synergies, AI-driven efficiencies and prepare for future revenue growth. highly scalable.

To this end, SAP plans to execute a company-wide restructuring program throughout the current year that is expected to affect approximately 8,000 jobs, 7.4% of the workforce of 107,602 workers at the end of 2023.

In this sense, the multinational from Walldorf (Germany) expects that the majority of positions affected by the restructuring will be covered through voluntary redundancies and internal recycling measures. Thus, taking into account reinvestments in strategic growth areas, SAP expects to close 2024 with a workforce similar to current levels.

The German company anticipates that the expenses associated with the restructuring will be around 2,000 million euros, the vast majority of which will be accounted for in the first half of 2024, which will affect the company's operating profit.

SAP undertook a workforce adjustment last year that affected some 3,000 workers, around 2.5% of its workforce at the time, with the aim of focusing on strategic growth areas, as well as strengthening its core business and improving efficiency. general.

At the same time, SAP reported this Wednesday that in 2023 it obtained an attributed net profit of 6,103 million euros, 167% more than the result recorded by the company in 2022, while its income totaled 31,207 million, 6% more.

Specifically, the German company's cloud business increased 20% annually, to 13,664 million euros, but revenue from licenses and support fell 5%, to 13,264 million.

Between October and December, SAP's attributable net profit increased by 60%, to 1,185 million euros. For its part, the company's turnover grew by 5%, up to 8,468 million.

Looking ahead to 2024, SAP expects to achieve cloud revenues of between 17,000 and 17,300 million euros, which would represent an annual increase of between 24% and 27%, while it hopes to exceed 21,500 million in 2025, when It still expects to exceed 37.5 billion in total revenue.

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