SAP AG (SAP) is cutting a number of jobs due to restructuring
SAP AG (ETR:SAP) is reducing its workforce as part of a restructuring at the company. The number of cuts is unknown. The personnel reductions are considered a strategic move rather than a cost-cutting measure.
“Our goal is to become simpler, more agile, faster and easier to work with,” said SAP in a statement. “This is a broad company-wide effort to make SAP more effective and strengthen our innovation leadership.”
SAP announced a plan to lay off 3,000 employees in 2009, but added to its headcount by acquiring companies like Sybase, SuccessFactors, and Ariba. SAP employed over 66,000 people at the end of 2013.
These job cuts are coming at a time where SAP is preparing to name Bill McDermott its sole CEO and co-CEO Jim Hagemann Snabe will be taking a seat on the supervisory board. SAP cloud head Shawn Price has made his way out of the company as well.
“This initiative is about simplifying SAP for the customer, not about job cuts,” added SAP. “In fact, our plan is that we will have more employees at the end of 2014 than at the beginning of the year. While we cannot avoid restructuring efforts in certain areas, we will continue to invest in our innovation leadership and become the cloud company.”
SAP’s cloud software revenue is growing at a rapid pace, but it is a small part of the company’s overall business.