As of: April 6, 2024, 10:22 a.m
By: Marcel Reich
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SAP is planning a massive restructuring with the aim of focusing on cloud technology and artificial intelligence. But 8,000 employees worldwide are paying the price.
Munich – The management team at SAP is planning a restructuring; 8,000 jobs will be eliminated worldwide. This is reported by the
Handelsblatt
. The company wants to focus on cloud technology and artificial intelligence. However, employee representatives see this primarily as a cost-cutting measure.
On Friday, the European works council criticized the management in an internal email. They did not adequately explain the business logic behind the restructuring and did not provide accurate information about existing inefficiencies, the report said. The name of the program, “Next Level Transformation,” has been described as a euphemism for workforce reductions.
SAP is expected to create new jobs primarily outside of Europe. © Uwe Anspach/dpa
Germany was particularly affected by job cuts
Germany is particularly affected, with 2,600 jobs expected to be lost. Job cuts are also planned in other European countries; a total of around 4,100 jobs will be lost in the committee's area of responsibility.
The job cuts at SAP are partly through voluntary measures such as early retirement and severance payments, partly through further training and partly through layoffs. In Germany there is an employment guarantee, so dismissals are excluded. The exact details are currently being negotiated with the social partners, so the exact scope has not yet been determined. Employee representatives criticize that the job cuts are not aimed at qualifications but at costs. In Germany in particular, early retirement and severance pay programs are likely to lead to older employees, who generally receive above-average salaries, leaving the company. However, both the employee and the employer must agree to this being voluntary.
It is expected that the creation of new positions will mainly take place outside of Europe, such as at the Bangalore location in India, where a new campus is currently being built. According to company sources, there are hardly any alternatives in Germany for employees who are considering retraining and are looking for another job internally.