While the winters are receding and are nearing an end, the winter lay-off season of tech biggies across the globe does not seem to recede anytime soon.
Joining the league of technology giants on a firing spree, the European multinational software company based in Walldorf, Germany, SAP has announced last week to lay-off almost 2.5% of its global workforce, amounting to almost 3,000 jobs across its global workforce.
Further, the German tech major is also looking to sell its remaining stake in Qualtrics, in which it holds a 71% stake.
SAP is joining the peers Microsoft, Google and Amazon in shedding off its workforce to cut costs in order to brace for difficult economic situations ahead.
However, the company is cutting its workforce at a time when SAP recorded a 30% jump in its quarterly revenue for the cloud business in the December ending quarter or the fourth quarter of 2022, led by a strong demand for its software services.
“We expect only a moderate cost saving impact for 2023, and a more pronounced one in 2024, about 300 million euros to 350 million in run rate savings as of 2024,” the company’s Chief Financial Officer Luka Mucic said to the journalists on a call.
In its home country Germany, SAP has reported to lay off over 200 employees.
Upon the decision to sell its stake held in Qualtrics, which the company bought in 2018 for $8 billion and took public at a valuation of almost $21 billion in 2021, SAP currently holds a 71% stake in the survey-software seller, with a market capitalization of $7 billion.
“(The sale) would result in a quite significant one-time gain. This would materially increase the profit performance of SAP, but it’s currently not reflected in the outlook,” CFO Luka Mucic said on the sale of Qualtrics.
