The phase of retrenchment is going on all over the world. Lakhs of people have lost their jobs due to retrenchment in other sectors including IT. Meanwhile, the German company has decided to lay off a large number of employees. Read the full news. Enterprise application software company will lay off 3000 employees.
LONDON: Enterprise application software provider SAP on Thursday disclosed that it will lay off around 2.5 per cent or 3,000 employees due to poor global macroeconomic conditions. The Germany-headquartered company said it expects a modest cost-saving effect this year. The company will cut more than 3 thousand jobs in Germany. Preparations are being done for this. Let us tell you that due to the retrenchment on a global scale, a large number of people are losing their jobs in the country and abroad.
Recently the company said that in the fourth quarter of 2022, its cloud revenue increased by 30 percent to 3.39 billion euros. SAP S/4HANA cloud revenue accelerated further, rising 101 percent to EUR 0.66 billion. However, its software license revenue fell 38 percent to 0.91 billion euros. SAP has also decided to explore the sale of its stake in Qualtrix. SAP believes that this potential transaction could unlock significant value for both companies and their shareholders. The company said that as of December 31, the total cloud backlog had increased by 35 percent to 34.2 billion euros.
In 2022, SAP’s business was affected by the war in Ukraine and the decision to close its business operations in Russia and Belarus. CFO Luca Mušić said the SAP team is announcing excellent results and continued cloud momentum. He said, we are on track to meet our growth and profitability commitments for 2023. I am extremely confident in the continued success of the most exciting transformation in SAP’s history.
