SAP Expands Restructuring: Up to 10,000 Jobs Cut Amidst Mixed Financial Results

This adjustment marks a 20% rise from earlier estimates, reflecting the company’s deeper focus on cost control despite higher revenue.

The restructuring move comes after SAP reported a 10% increase in revenue for Q2, reaching €8.3 billion, but saw a decline in operating profit.

Operating profit fell to €1.2 billion from €1.4 billion the previous year, partly due to €600 million in restructuring expenses.

CFO Dominik Asam explained that the revised job cut numbers involve both direct layoffs and a strategic refinement of roles and locations.

Despite the job losses, SAP's financial performance was positively received by the market, with shares rising up to 7% following the announcement

CEO Christian Klein emphasized the disciplined execution of the transformation program, including a focus on essential skill sets and cost efficiencies.

SAP's efforts to integrate AI into its business applications are showing results, with nearly 20% of Q2 deals including advanced AI use cases.