SAP, a leading European Software provider is reorganising 8,000 positions with an emphasis on Artificial Intelligence (AI).

This year, the company intends to invest €2 billion ($2.2 billion) in the change, which will include buyouts and retraining initiatives.

Making this choice is essential to set up the business for future revenue development that will be extremely scalable.

The majority of SAP’s 108,000 employees will be protected by voluntary leave policies and internal reskilling initiatives, accounting for over 70% of the affected workforce.

SAP anticipates returning to existing headcount levels by the end of fourth quarter of 2024.

SAP is increasing its investment in key growth areas, including Business Artificial Intelligence, according to Chief Executive Christian Klein.

The newest business to give AI top priority is SAP.

This comes after generative AI technology, which powers well-known platforms like ChatGPT. The Software company promised to contribute more $1 billion to support enterprise software startups powered by AI last summer, along with investments in three generative AI companies.

Significant investments in AI have also been announced by other Information Technology companies, including Wipro and Huawei.

SAP predicted a rise in sales of 24% to 27% for its core cloud business in the upcoming year, and the company produced annual earnings that essentially beat estimates.

In New York, the company’s shares increased 4% in after-hours after the announcement.

https://samsunblog.com/2024/01/24/sap-set-to-reorganize-8000-jobs-emphasizes-on-ai/