(Reuters) – German software company SAP SE on Tuesday unveiled a two-billion-euro restructuring plan for 2024 that will affect 8,000 jobs as the group seeks to focus on business areas focused on artificial intelligence (AI).
SAP, which has said it expects generative AI to fundamentally change its business, has committed to investing more than $1 billion in backing AI-powered technology startups through its capital firm company Sapphire Ventures.
CEO Christian Klein said the program would enable SAP to continue to develop pioneering innovations while improving the efficiency of business processes.
The restructuring program will be implemented mainly through voluntary departures and internal reskilling measures, said SAP, which currently employs more than 105,000 people.
The restructuring costs will be recognized mainly in the first half of 2024, SAP said. The program should subsequently contribute €500 million to operating profit in 2025.
On the Frankfurt Stock Exchange, SAP shares climbed more than 7% in early trading.
(Reporting Kanjyik Ghosh and Hakan Ersan; Nathan Vifflin, edited by Blandine Hénault)
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