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SAP to restructure 8,000 jobs in push towards AI, HR News, ETHRWorld


hr.economictimes.indiatimes.com | www.ETHRWorld.com

<p>The company said it will spend 2 billion euros ($2.2 billion) on the programme to either retrain employees with AI skills or to replace them through voluntary redundancy programs</p>
The company said it will spend 2 billion euros ($2.2 billion) on the programme to either retrain employees with AI skills or to replace them through voluntary redundancy programs

By Hakan Ersen and Supantha Mukherjee

Shares of SAP SE jumped 7% to an all-time high after the German software firm forecast growth in cloud revenue and said it will restructure roles for 8,000 jobs to focus on growth in artificial intelligence (AI)-driven business areas.

The company said it will spend 2 billion euros ($2.2 billion) on the programme to either retrain employees with AI skills or to replace them through voluntary redundancy programs.

SAP, which expects to end 2024 with a headcount similar to current levels, started experimenting with OpenAI’s ChatGPT as soon as the generative AI technology started gaining traction and announced plans to embed it in its products early last year.

The German company now expects GenAI to fundamentally change its business and has pledged to invest more than $1 billion by backing AI-powered technology startups through its investment arm Sapphire Ventures.

“The right adjustments are being made and the company is being reorganised to prepare it for the age of artificial intelligence,” said investment strategist Jurgen Molnar at brokerage RoboMarkets.

“Even if some employees are likely to fall by the wayside, HR policy is less of a cost issue and more of a strategic one, in which many new opportunities are…


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