SAP: SAP wants to cut 3,000 jobs, consider selling shares in Qualtrics

JUICE mentioned Thursday it plans to chop 3,000 jobs, or 2.5% of its international workforce, and to discover promoting its remaining stake in Qualtrics because the German software program firm seeks to chop prices and concentrate on its cloud enterprise.

SAP is the most recent tech firm to chop jobs after firms like Alphabet’s Google, Microsoft and Amazon introduced hundreds of layoffs to chop prices as they brace for more durable financial situations.

“We count on solely a average value financial savings impact for 2023 and a extra pronounced one for 2024, round 300 to 350 million euros in run price financial savings from 2024,” mentioned CFO Luka Mucic in an interview with journalists.

In Germany, the place SAP is headquartered, the corporate will lower simply over 200 jobs.

The layoffs come after SAP reported a 30% enhance in income at its cloud enterprise within the fourth quarter, helped by robust demand for its software program.

SAP has additionally initiated the method of promoting its stake in Qualtrics. The corporate purchased the corporate for $8 billion in 2018 and took it public in 2021 at a valuation of almost $21 billion.

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At present, survey software program supplier Qualtrics has a market worth of $7 billion and SAP owns a 71% stake. “(The sale) would lead to a reasonably substantial one-time acquire,” Mucic mentioned. “This is able to considerably enhance SAP’s earnings growth, however isn’t presently mirrored within the outlook.”

SAP forecasts currency-adjusted core working revenue of 8.8 to eight.9 billion euros for this 12 months. It additionally expects cloud revenues to develop to between €15.3 billion and €15.7 billion in fixed forex for 2023, from €12.56 billion final 12 months.

Whereas analysts had raised considerations that SAP’s profitable cloud enterprise may very well be hit as different firms tighten budgets attributable to financial uncertainty, SAP has been gaining extra clients.

“We are going to announce a singular strategic partnership with BMW that depends on SAP in all dimensions – one of many largest offers ever signed yesterday,” mentioned CEO Christian Klein.

($1 = 0.9159 euros)

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