A sign reading "SAP" hangs on a building at the headquarters of the software company SAP. (picture alliance/dpa/Uwe Anspach)
German software giant SAP is expanding its workforce reduction plan due to the willingness of many employees to accept redundancy.
Instead of the previously planned 8,000 jobs, the company announced earlier this week that 9,000 to 10,000 of the current jobs will be affected.
The company, based in the town of Walldorf in south-western Germany, had 105,315 employees at the end of the second quarter, about 3,000 fewer than the previous quarter.
SAP has intensified its focus on artificial intelligence (AI) as a crucial growth area and announced a restructuring programme in January.
Despite the difficult economic situation, the company's operating result in the second quarter increased more than expected.
The company recorded earnings before interest, taxes, depreciation and amortization (EBITDA) up by 33% year-on-year to €1.94 billion ($2.11 billion), it said.
Revenue for the quarter rose 10% to €8.29 billion from €7.55 billion last year.
Net profit decreased by 69% to €918 million in the second quarter, primarily due to the additional income from the sale of the former US subsidiary Qualtrics a year earlier.
The company has confirmed its forecast for the year 2024.
Due to the expansion of its job reduction programme and the associated increase in cost savings, SAP expects to achieve an additional €0.2 billion in operating income in 2025.
The revenue outlook for the coming year remains unchanged.
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