Germany’s SAP will restructure this year, eliminating about 7.6 percent of current jobs.
SAP currently employs more than 105,000 people. However, the operational set-up must change to respond to key strategic growth areas, SAP explains in announcing the restructuring. The company sees many growth opportunities, especially in the field of AI. At the same time, it means that nearly 8,000 of the current jobs will disappear. It is unknown exactly which positions will get hit by the plans.
Voluntary and re-skilling
For those affected by the restructuring, SAP is presenting them with two options. First, a voluntary departure. That could be a possible option for employees considering leaving or for employees not in their place at the company. Such a voluntary departure might also work for affected employees heading toward retirement age.
A second option SAP offers is re-skilling to allow staff to fill a new position internally. Based on SAP’s statement, employees interested in re-skilling appear to be primarily allowed to engage in Business AI.
SAP assumes it will find a solution for most of the 8,000 affected jobs through voluntary departure and re-skilling. Incidentally, SAP’s workforce at the end of the year is expected to be about the same size as it is now. So, there will also be quite a few jobs added again.
SAP estimates that the restructuring will cost about 2 billion euros.
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