Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

SAP cutting unspecified number of jobs in workforce restructuring

SAP will ultimately add more jobs by the end of this year, according to a spokesman

Article comments

SAP is trimming an unspecified number of workers as part of an effort to restructure its overall skill set.

Company spokesman Andy Kendzie declined to specify the number of cuts, which come shortly before SAP's major annual Sapphire Now conference, and just after a series of high-profile executive changes that included the departure of development chief Vishal Sikka.

Kendzie characterized the personnel reductions as a strategic move, not a purely cost-cutting measure.

"Our goal is to become simpler, more agile, faster and easier to work with," he said in a statement. "This is a broad company-wide effort to make SAP more effective and strengthen our innovation leadership."

"This initiative is about simplifying SAP for the customer, not about job cuts," Kendzie added. "In fact, our plan is that we will have more employees at the end of 2014 than at the beginning of the year. While we cannot avoid restructuring efforts in certain areas, we will continue to invest in our innovation leadership and become the cloud company."

SAP announced a plan to lay off 3,000 workers in 2009, but since then added significantly to its headcount through acquisitions such as Sybase, SuccessFactors and Ariba. The company had more than 66,000 employees at the end of 2013, according to its most recent annual report.

The current job cuts come as SAP prepares to name Bill McDermott its sole CEO, as co-CEO Jim Hagemann Snabe takes a seat on the company's supervisory board.

After Sikka's abrupt departure earlier this month, SAP also parted ways with its head of cloud software sales, Shawn Price, and reworked the executive structure of its Americas division.

SAP's cloud software revenue is growing quickly, but remains a small part of its overall business. The vendor has also seen sales of on-premises software licenses fall of late.

Meanwhile, Sapphire Now is set to kick off June 3 in Orlando. The event provides SAP with its biggest platform to discuss product road maps and its broad strategic vision.

"With so much change going on before Sapphire Now, customers and partners are wondering what else is ahead for the event," said analyst Ray Wang, founder and chairman of Constellation Research.

Hopefully, SAP's reorganization efforts will settle down "and the company will focus on the most important thing -- meeting its customer's needs," Wang said.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *