SAP cuts 3,000 jobs and plans to sell its stake in Qualtrics

SAP, the German ERP champion, has not escaped the wave of layoffs that are currently affecting all digital players. This Thursday, January 26, he announced a plan to cut 3,000 jobs, or 2.5% of his wages worldwide. Microsoft, Salesforce, Google and many others join this.

This announcement comes in a positive context for SAP, which indicates that it has met all of its financial targets in 2022 and its cloud-related revenues have increased by 33%, with a reserve of 12 billion euros. This is a cost optimization measure, the impact of which should not be felt until 2024 and which the company estimates will save 350 million euros per year.

Ditch Qualtrics and Focus on the Cloud

In addition, SAP is about to sell its shares to customer experience company Qualtrics to focus on its cloud business. Recall that he acquired it in 2018 for $8 billion and placed it on the stock market in 2021. SAP still owns 71% and Qualtrics is currently valued at $7 billion.

Overall, SAP expects higher earnings in 2023 and does not appear to be worried about the macro context. In particular, he can count on major new customers, including the BMW Group, which on January 25 signed one of the largest contracts in SAP history to move all of this activity to S/4HANA.

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