SAP
plans
to
cut
3000
jobs,
or
2.5
percent
of
its
global
workforce,
and
explore
the
sale
of
its
remaining
stake
in
Qualtrics,
as
the
Germany
software
company
looks
to
cut
costs
and
focus
on
its
cloud
business.
SAP
is
the
latest
tech
company
to
cut
jobs
after
companies
including
Google,
Microsoft
and
Amazon
announced
thousands
of
layoffs
to
cut
costs
as
they
brace
for
tougher
economic
conditions.
“We
expect
only
a
moderate
cost
saving
impact
for
2023,
and
a
more
pronounced
one
in
2024,
about
300
million
euros
to
350
million
(A$459
million
to
A$536
million)
in
run
rate
savings
as
of
2024,”
CFO
Luka
Mucic
said.
In
Germany,
where
SAP
is
headquartered,
the
company
will
cut
slightly
more
than
200
jobs.
The
layoffs
come
after
SAP
reported
a
30
percent
revenue
increase
in
its
cloud
business
in
the
fourth
quarter,
helped
by
strong
demand
for
its
software.
SAP
has
also
started
the
process
to
sell
its
stake
in
Qualtrics.
It
bought
the
company
for
US$8
billion
(A$11.25
billion)
in
2018
and
took
it
public
in
2021
at
a
valuation
of
nearly
US$21
billion.
Currently,
survey-software
seller
Qualtrics
has
a
market
value
of
US$7
billion
and
SAP
has
a
71
percent
stake.
“(The
sale)
would
result
in
a
quite
significant
one-time
gain,”
Mucic
said.
“This
would
materially
increase
the
profit
performance
of
SAP,
but
it’s
currently
not
reflected
in
the
outlook.”
SAP
forecast
core
operating
profit
of
8.8-8.9
billion
euros
at
constant
currencies
for
this
year.
It
also
expects
cloud
revenue
at
constant
currencies
for
2023
to
rise
to
15.3-15.7
billion
euros,
from
12.56
billion
euros
last
year.
While
analysts
had
raised
concerns
that
SAP’S
lucrative
cloud
business
might
take
a
hit
with
other
companies
tightening
their
budgets
due
to
economic
uncertainty,
SAP
has
been
signing
more
customers.
“We
are
going
to
announce
a
unique
strategic
partnership
with
BMW
betting
on
SAP
on
all
dimensions
–
one
of
the
biggest
deals
ever,
which
was
signed
yesterday,”
chief
executive
Christian
Klein
said.
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