SAP CEO Christian Klein speaks at a panel discussion on the third day of the World Economic Forum (WEF) in Davos, Switzerland, on Thursday, January 19, 2023.
Stefan Wermuth | Bloomberg | Getty Images
SAP said in a statement on Tuesday that the company is seeking voluntary buyouts or job changes for 8,000 employees by 2024 as part of a restructuring program. However, the German business software maker said the number of employees should remain the same. SAP shares rose about 1% in extended trading.
The company wants to reposition itself to achieve faster sales growth, including through artificial intelligence. Total revenue increased 5% year-over-year in the fourth quarter.
SAP now expects adjusted operating profit of 10 billion euros ($10.85 billion) in 2025. That's down 2 billion euros from the previous forecast due to stock-based compensation, but down thanks to planned efficiencies from the restructuring Increase of 500 million euros.
The company employed approximately 112,000 full-time employees at the time of publication of its 2022 annual report. A year ago the company announced that it would cut 3,000 jobs.
In 2023, SAP shares gained about 50%, its best performance since 2012, while the Nasdaq Composite Index gained 43%.
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