SAP Announces Cuts as It Pivots Towards Emerging Technologies
SAP has announced a large-scale restructuring effort, as it shifts its focus towards new technologies.
Following stagnating profits in 2018, the German software giant aims to achieve annual cost savings of up to £850 million in the coming years. This, it says, will be spent on investments in new technologies.
In 2019, SAP will spend between £698m and £830m and slash up to 4,400 jobs as part of the initiative. Nevertheless, the company insists that the initiative will achieve cost savings before the end of the year, according to a phys.org report.
CEO, Bill McDermott, said the restructuring will open up resources for SAP to explore emerging areas in the software industry and result in net positive staff growth.
“We are going to move our people and our focus to the areas SAP needs the most: AI, blockchain, internet of things, quantum computing,” he said.