SAP to cut 3,000 jobs in efficiency move, explores Qualtrics stake sale
FILE PHOTO: The logo of German software group SAP is pictured at its headquarters in Walldorf, Germany, May 12, 2016. REUTERS/Ralph Orlowski
BERLIN : SAP on Thursday said it plans to cut 3,000 jobs, or 2.5 per cent of its global staff, and to explore a sale of its remaining stake in Qualtrics to focus on strategic growth areas and operate more efficiently.
With the planned job cuts, SAP joins other big tech companies including Microsoft and Amazon in turning to layoffs to cut costs.
SAP reported a 30 per cent revenue increase in its cloud business in the fourth quarter, helped by strong demand for its HANA software.
Analysts are worried that the lucrative cloud segment for big tech companies could be hit hard as customers look to cut spending.
SAP's operating profit grew 17 per cent in the three months through December to 1.71 billion euros ($1.87 billion) on group revenue of 8.44 billion euros, it said.
