German enterprise technology major SAP has announced a major restructuring plan aimed at accelerating its AI efforts. The plan will result in around 8,000 roles being impacted, with up to two-thirds of the affected individuals potentially finding new positions within SAP or opting for voluntary programmes.
CEO Christian Klein emphasized the company’s focus on reskilling, with a significant investment of ₹100-₹150 million in learning across all teams and board areas by 2024. SAP will also offer initiatives to support employees interested in transferring to new positions internally.
The restructuring is driven by SAP’s recognition of artificial intelligence (AI) as a key focus area for future success. The company aims to implement a company-wide restructuring programme to align resources and priorities with its AI strategy.
Although SAP did not comment specifically on the impact of the restructuring on its operations in India, the country is home to its largest R&D base outside Germany and contributes 40% to the company’s global R&D efforts. SAP’s spokesperson acknowledged the volatile global macroeconomic landscape and the seismic changes driven by AI in the technology sector. The company is committed to a socially responsible approach and aims to accommodate employees through reassignment to new areas and voluntary programmes, including early retirement options.
SAP expects its restructuring expenses to reach approximately 2 billion, with the majority being recognized in the first half of this year. Despite the restructuring, the company plans to continue reinvesting in strategic growth areas and aims to maintain a similar headcount by 2024.
This move by SAP reflects its determination to remain at the forefront of AI innovation while ensuring the future success of the organization. By reallocating resources and investing in reskilling, the company aims to position itself for long-term growth in an ever-evolving technology landscape.
FAQ:
1. What is the major restructuring plan announced by SAP?
SAP has announced a major restructuring plan aimed at accelerating its AI efforts. This plan will result in approximately 8,000 roles being impacted.
2. What is the company’s focus in terms of reskilling?
CEO Christian Klein emphasized the company’s focus on reskilling. SAP plans to make a significant investment of ₹100-₹150 million in learning across all teams and board areas by 2024.
3. Will affected individuals have the opportunity to find new positions within SAP?
Yes, up to two-thirds of the affected individuals will have the opportunity to find new positions within SAP or opt for voluntary programmes.
4. Why is SAP undertaking this restructuring?
The restructuring is driven by SAP’s recognition of artificial intelligence (AI) as a key focus area for future success. The company aims to align resources and priorities with its AI strategy through a company-wide restructuring programme.
5. How will employees interested in transferring to new positions be supported?
SAP will offer initiatives to support employees interested in transferring to new positions internally. The company is committed to accommodating employees through reassignment to new areas and voluntary programmes, including early retirement options.
6. What is the impact of the restructuring on SAP’s operations in India?
Although SAP did not comment specifically on the impact of the restructuring on its operations in India, the country is home to its largest R&D base outside Germany and contributes 40% to the company’s global R&D efforts.
7. What are SAP’s expectations regarding the financial impact of the restructuring?
SAP expects its restructuring expenses to reach approximately 2 billion, with the majority being recognized in the first half of this year. Despite the restructuring, the company plans to continue reinvesting in strategic growth areas and aims to maintain a similar headcount by 2024.
Definitions:
– R&D: Research and Development
Suggested Related Links:
– link to SAP official website
– link to SAP’s AI solutions
The source of the article is from the blog elperiodicodearanjuez.es