SAP has also committed to investing over $1 billion in generative AI through its AI-powered technology start-up Sapphire Ventures. The company anticipates its 2024 cloud revenue to be between 17 billion euros and 17.3 billion euros. However, it fell short of its forecasted cloud business revenue at the end of 2023, which was 13.66 billion euros, compared to the predicted 14.06 billion euros.
Key takeaways:
- German software company SAP SE has announced a restructuring plan worth 2 billion euros ($2.17 billion) that will affect 8,000 positions, with a focus on enhancing its AI-driven business sectors.
- The restructuring will be implemented mainly through voluntary leave schemes and internal re-skilling measures, with an expectation to maintain a similar headcount by the end of 2024.
- SAP plans to invest over $1 billion in generative AI through its AI-powered technology start-up Sapphire Ventures, and anticipates the restructuring expenses to impact operating profit, primarily in the first half of 2024.
- In January 2023, SAP announced plans to cut 3,000 jobs and explore the sale of its remaining stake in Qualtrics, aiming to cut costs and focus on its cloud business.