According to reports, 300 employees across offices in the nation have been laid off by SAP Labs India, the research and development division of the German technology company SAP. According to a Friday report by the Economic Times, the layoff was caused by the closure of a global delivery centre that was responsible for custom development roles to carry out implementation projects.
Most layoffs in Bengaluru & Gurugram:
The Bengaluru and Gurugram offices saw most of these layoffs. Severance packages consisting of salaries based on the number of years of employment with the company were given to those affected. Additional locations for SAP Labs India include Hyderabad, Pune, and Mumbai.
According to Kulmeet Bawa, Managing Director and President of SAP’s India subcontinent, India’s contribution to the company’s cloud revenues in the Asia Pacific and Japan region had doubled over the previous two years, and the nation still holds the top position in the region for the German technology company. The company can currently accommodate 19,000 employees in India.
Severance packages in addition to other benefits:
As per the ET report, some of the laid-off workers had between 10 and 15 years of experience and received severance packages in addition to other benefits. In an effort to reduce costs and concentrate on its cloud business, the parent company of SAP Labs, SAP, announced late last month that it would eliminate 3,000 jobs, or 2.5% of its global workforce, and consider selling its remaining Qualtrics stake.
Over-hiring, cost pressures, and funding issues have presented significant problems for businesses as the world emerges from the pandemic era. Mass tech layoffs continued in January 2023 and are anticipated to continue throughout Q1 2023. According to Trueup.io, a tech layoff tracker, in January 2023, roughly 106,950 workers in the tech sector lost their jobs, which is worse than the combined job losses in November and December 2023 (50,573 workers and 40,368 employees, respectively).
