Germany’s SAP plans major workforce reduction
Date
12/17/2024 3:55:49 AM
(MENAFN) Germany’s top software firm, SAP, is set to significantly decrease its workforce, as reported by the financial publication Handelsblatt on Monday, citing sources within the company.
Approximately 3,500 of SAP's 25,000 employees in Germany are anticipated to agree to early retirement, according to the report.
This action is part of the company’s “Next Level Transformation” initiative unveiled in January, which could ultimately affect up to 10,000 jobs across the entire company.
The plan has faced backlash from European Works Councils, which represent employees in multinational corporations. They have labeled the initiative as a “euphemism” for mass layoffs, asserting that management has not provided a clear rationale for the workforce reductions.
The restructuring is part of a wider trend in Germany. A recent survey by the Institute of the German Economy found that four out of ten businesses are planning job cuts in the coming year. Around 38 percent of companies cited poor economic forecasts as the reason for reducing their staff, while only 20 percent remain optimistic, and 40 percent foresee a drop in their business.
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