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SAP Shifts to Annual 1–2% Staff Cuts While Boosting AI Automation and German R&D

The CEO cautions that potential EU algorithm disclosure mandates could erode business competitiveness

Overview

  • SAP completed its initial 10,000-job reduction and now employs about 109,000 people, slightly above early 2024 levels thanks to selective hiring in growth areas
  • The company will move from large layoff waves to modest annual workforce reductions of one to two percent
  • Christian Klein says AI tools will support sales preparation, documentation and software development to drive efficiency and reshape job functions
  • SAP plans to invest an additional €2 billion in German research and development by 2027 on top of roughly €10 billion spent over the past five years
  • Klein warns that EU regulations such as algorithm disclosure requirements could impose burdens that weaken SAP’s and Europe’s global competitiveness