Berlin: German software major SAP on Thursday said it is looking to terminate 3,000 jobs this year, at a time when global big tech companies are resorting to mass layoffs to cut costs citing weak growth and grim economic outlook, media reports said.
According to an AFP report, to carry out a "targeted restructuring programme" to "strengthen its core business" and improve efficiency.
SAP, based in Germany’s Walldorf, offers both traditional software and cloud-based computing services.
"The programme is expected to affect approximately 2.5 percent of SAP's employees," it said in an earnings report unveiling full-year results for 2022, the report said.
Currently, SAP has 12,000 workers and a 2.5 percent cut implies, a reduction of 3,000 employees.
Meta, Amazon, Google, IBM and Microsoft have already fired thousands of workers to prepare for a probable economic downturn.
SAP said its jobs cull would cost the company between 250 and 300 million euros, mainly in the first quarter of 2023, the AFP report said.
The restructuring is expected to lead to annual savings of 300-350 million euros from 2024, "which will help to fuel investments into strategic growth areas", SAP said, the report added.
The company is also planning to sell of its Qualtrics subsidiary, which specialises in online market research software. The move will enable SAP to focus on its core cloud business.