SAP plans job changes or buyouts for 8,000 employees in restructuring plan

SAP said in a statement on Tuesday that it aims to carry out voluntary buyouts or job changes for 8,000 employees as part of a 2024 restructuring program. But the German business software maker said its headcount should remain the same. SAP shares were up about 1% in extended trading.

The company is looking to reposition itself for faster revenue growth, in part from artificial intelligence. Total revenue grew 5% year over year in the fourth quarter.

SAP said it now expects 10 billion euros ($10.85 billion) in 2025 adjusted operating profit. That's down 2 billion euros from its previous outlook because of share-based compensation, but up by 500 million euros thanks to planned efficiencies from the restructuring.

The company had about 112,000 full-time employees when it published its 2022 annual report. A year ago the company said it would get rid of 3,000 roles.

In 2023, SAP stock gained about 50% in value, its best performance since 2012, while the Nasdaq Composite index grew 43%.

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