SAP is restructuring to better focus on AI

Jan 23 (Reuters) – German software company SAP SE on Tuesday unveiled a two-billion-euro restructuring plan for 2024 that will affect 8,000 jobs as the group seeks to focus on areas of the business based on technology. Artificial intelligence (AI) .

SAP, which said it expects generative artificial intelligence to fundamentally change its business, has pledged to invest more than $1 billion to support AI-based technology startups through its equity firm Sapphire Ventures.

CEO Christian Klein said the program will enable SAP to continue to develop pioneering innovations while improving the efficiency of business processes.

The restructuring program will be implemented primarily through voluntary redundancies and internal retraining measures, said SAP, which currently employs more than 105,000 people.

Restructuring costs will be recognized primarily in the first half of 2024, SAP said. The program should subsequently contribute 500 million euros to operating profit in 2025.

SAP shares rose more than 7% in early trading on the Frankfurt Stock Exchange.

(Reporting by Kanjyik Ghosh and Hakan Ersan; French editing by Nathan Vifflin; Editing by Blandine Hénault).

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