Germany Company SAP Lays Off 2.5 Percent Staff: Amidst the sound of economic crisis in the world, the phase of retrenchment is going on in big companies. After companies like Google, Facebook and Amazon, now German company SAP will lay off 2.5 percent of its total manpower i.e. about 3,000 staff globally.
To deal with the economic crisis, SAP, which makes business application software, is also considering the option of selling its 71 percent stake in another software company, Qualtrics. Not only this, the company has also made preparations to show the way out to more than 200 staff in Germany.
These companies have also done layoffs on a large scale
With the announcement of this retrenchment, SAP has now joined the list of Alphabet-owned companies like Google (Google), Microsoft (Microsoft), Amazon (Amazon) and Meta, which have laid off thousands of people in recent times. . Every company has blamed the economic crisis behind the retrenchment.
The company cited the economic crisis as the reason behind the retrenchment.
Announcing the layoffs, SAP Chief Financial Officer Luca Mušić said, “We are focusing on only moderate cost savings for 2023. Under this, we plan to save up to 300 million euros.” Let us tell you that SAP has reported 30 percent revenue growth in its cloud business in the fourth quarter. Even after this, the announcement of retrenchment is surprising.
Preparing to sell its stake in Qualtrics
SAP has also started the process of selling its stake in Qualtrics, which it bought for $8 billion in 2018 and plans to take it public in 2021 at a valuation of around $21 billion. The current valuation of Qualtrix is $7 billion. “The outcome of this sale would be significant and accretive to SAP’s earnings performance, but this is not currently feasible,” Musik said.
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