Media reports Germany’s top tech company contemplates cutting labor force
Date
12/17/2024 7:27:55 AM
(MENAFN) Germany’s leading software company, SAP, is planning to reduce its workforce by approximately 3,500 employees, according to a report from financial newspaper Handelsblatt. This reduction, primarily through early retirement agreements, is part of SAP’s “Next Level Transformation” program, which could eventually affect up to 10,000 jobs across the company.
The move has faced backlash from European Works Councils, which represent workers in multinational companies, criticizing the plan as a cover for mass layoffs and questioning the justification for the cuts. SAP’s restructuring follows a broader trend in Germany, where a significant number of companies plan job cuts in the upcoming year, citing poor economic conditions. While SAP’s stock price has increased by 75.7% in the past year, employee morale remains low due to the uncertainty surrounding job reductions. The shift toward artificial intelligence, announced by SAP in January, is central to the company’s strategy for future growth.
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