NIXsolutions: SAP SE Restructures Workforce for AI Integration and Future Growth

SAP SE, a prominent German enterprise software maker, has unveiled a significant organizational overhaul set to impact around 7% of its workforce, totaling 8,000 jobs. The primary objective of this strategic move is the incorporation of artificial intelligence (AI) technologies to enhance synergy and efficiency within the company.


Restructuring for AI Advancement

The initiative aims to reshape SAP’s operational structure, positioning the company for future growth driven by the transformative capabilities of AI. The restructuring costs are tentatively estimated at approximately €2 billion, with a significant portion allocated to the first half of 2024.

Balancing Workforce Transition

As part of the reorganization, SAP plans to either retrain existing employees in AI skills or implement voluntary separation programs. Importantly, the company affirms that the overall headcount will remain unchanged by the end of the year, mitigating the impact on its workforce.

Growth Projections and Financial Outlook

Looking ahead to the financial forecast, SAP anticipates substantial growth in the cloud segment for the 2024 fiscal year, projecting revenues between €17.0 billion and €17.3 billion in constant currency. This reflects a notable increase of 24–27% compared to the preceding year. Operating profit is also expected to surge, ranging from €7.6 billion to €7.9 billion, marking a growth rate of 17–21% compared to 2023, notes NIXsolutions.

In 2025, SAP envisions an operating profit of around €10 billion. This growth trajectory aligns with predictions of cloud segment revenues surpassing €21.5 billion and total revenue exceeding €37.5 billion.