Germany's leading technology company plans major job cuts – reports
SAP, the software giant, is set to reduce its workforce in Germany by 14% as it pivots towards artificial intelligence to drive future growth. Read Full Article at RT.com.
TroibNews 
SAP, Germany's prominent software firm, is poised to significantly reduce its workforce, as reported by the financial newspaper Handelsblatt on Monday, citing sources within the company.
About 3,500 of the 25,000 employees in Germany are anticipated to accept early retirement agreements, according to the publication.
This decision is part of the “Next Level Transformation” program introduced in January, which may ultimately affect 10,000 positions across the entire organization.
The initiative has faced backlash from European Works Councils, which represent employees in transnational firms. They have labeled the plan a “euphemism” for mass layoffs, arguing that management has not provided sufficient justification for the reductions.
The restructuring aligns with a broader trend in Germany. A recent survey by the Institute of the German Economy found that four out of ten companies intend to implement job cuts in the upcoming year. Of those surveyed, 38% indicated they would reduce their workforce due to dismal economic outlooks, while only 20% expressed optimism; 40% expect a downturn in their business.
In January, SAP declared its commitment to artificial intelligence as an essential growth sector, joining a multitude of companies in realigning their strategies towards AI.
While SAP's stock price has risen by 75.7% in the past year, employee morale has plummeted amid the anticipated job cuts, according to Handelsblatt. The Institute of the German Economy has noted that the steady increase in job numbers in the country since 2005 has come to a halt, with economists forecasting enduring job losses nationwide, especially in the industrial sector.
Allen M Lee for TROIB News
About 3,500 of the 25,000 employees in Germany are anticipated to accept early retirement agreements, according to the publication.
This decision is part of the “Next Level Transformation” program introduced in January, which may ultimately affect 10,000 positions across the entire organization.
The initiative has faced backlash from European Works Councils, which represent employees in transnational firms. They have labeled the plan a “euphemism” for mass layoffs, arguing that management has not provided sufficient justification for the reductions.
The restructuring aligns with a broader trend in Germany. A recent survey by the Institute of the German Economy found that four out of ten companies intend to implement job cuts in the upcoming year. Of those surveyed, 38% indicated they would reduce their workforce due to dismal economic outlooks, while only 20% expressed optimism; 40% expect a downturn in their business.
In January, SAP declared its commitment to artificial intelligence as an essential growth sector, joining a multitude of companies in realigning their strategies towards AI.
While SAP's stock price has risen by 75.7% in the past year, employee morale has plummeted amid the anticipated job cuts, according to Handelsblatt. The Institute of the German Economy has noted that the steady increase in job numbers in the country since 2005 has come to a halt, with economists forecasting enduring job losses nationwide, especially in the industrial sector.
Allen M Lee for TROIB News
