EMCC European Monitoring Centre on Change



Geographic Location

Country: World


Sector: Information / communication
IT and other information services
62 - Computer programming, consultancy and related activities
Number Employed: 96500
Group: Canada, France, Germany, USA

Employment Effects

Announcement Date: 29-01-2019
Planned Job Reductions min: 4400
Planned Job Reductions max: 4400
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-01-2019
Foreseen End Date: 31-12-2019
Planned Job Creation: 8000

Additional Information

The German technology company SAP has announced a reorganisation that will lead to cut about 4,400 positions (about 4.5% of its global workforce) mainly through early retirement, and to recruit about 8,000 new employees. Therefore, the company expects its overall head count to exceed 100,000 by the end of 2019, up from 96,500 at the turn of the year. SAP's CEO said that this reorganisation is not a cost-cutting move and that SAP is a growth company.

Job cuts will mainly concern Germany and the United States, and to a lesser extent Canada and France. In these four countries, employees considered as senior will be offered early retirement packages. Discussions with employee representatives will start in February. With regard to recruitment, new employees should join the teams responsible for working on the so-called future technologies of artificial intelligence, the Internet of Things and quantum computing. The group achieved a turnover of €24.7 billion in 2018, up 5% but below its objectives. By 2023 and after this reorganisation, the management hopes to triple its turnover from online software and generate a total of more than €35 billion in revenues.