SAP bets big on AI, overhauls 8,000 jobs
WALLDORF, GERMANY — German software firm SAP announced major restructuring plans this week, including a €2 billion (US$2.2 billion) investment in 2024 focused heavily on artificial intelligence (AI).
In a statement, the firm explained that the shift aims to “prepare for highly scalable future revenue growth” centered around AI solutions for enterprise customers.
The plans impact roughly 8,000 positions within the firm, with most transitions expected through voluntary departure programs or internal reskilling. Once the reinvestment is completed, SAP intends to retain its headcount near its current levels.
“SAP is opening the next chapter: with the planned transformation program, we are intensifying the shift of investments to strategic growth areas, above all Business AI,” said CEO Christian Klein in a separate statement. “We are confident about the company’s prospects in 2024.”
The restructuring builds on over $1 billion recently pledged towards developing AI applications over the next two years. SAP also aims to utilize AI internally to drive automation and productivity gains.
Still, SAP said that partnerships remain key to advancing their AI offerings, including their agreements with Google Cloud, Microsoft, IBM, Qualtrics, and others.
SAP sees massive potential in generative AI, which Klein called “the greatest opportunity since the rise of the cloud.”
The firm reported strong 2023 earnings last week, with cloud revenue up 25% annually. It also expects accelerated cloud growth in 2024 as it pivots to lead in enterprise AI software.
