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SAP Shifts to Steady Annual Job Cuts After Completing 10,000 Layoffs

Investments in AI automation support the transition to modest workforce reductions with increased funding for German research projects.

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SAP-Konzernzentrale in Walldorf.
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Overview

  • SAP has finished its one-off reduction of 10,000 positions initiated in early 2024, leaving headcount at about 109,000.
  • The company will implement continuous annual cuts of 1–2 percent instead of large-scale layoff rounds.
  • AI-driven tools will automate tasks in sales preparation, documentation and software development to drive further savings.
  • An additional €2 billion will be invested in German research and development by 2027 on top of the roughly €10 billion spent over the past five years.
  • Christian Klein warned that prescriptive European rules on algorithm disclosure could undermine the firm’s global competitiveness.