The German software company SAP has made the decision to restructure its corporate organization and introduce artificial intelligence (AI) in order to reduce its expenses. The company has initiated a transformation program worth $2.2 billion, which is expected to impact approximately 8,000 employees.
This transformation comes in response to the rapid development of AI, which has caused many employees to fear for their jobs. However, SAP has stated that it has no intention of laying off its employees, but rather to reorganize and provide them with training.
While it is reported that the company employs around 107,600 individuals, this transformation is expected to affect approximately 7% of them. The company states that jobs will not be abolished, but rather employees will be asked to opt for voluntary departures and some of them will be retrained.
SAP has invested approximately $1 billion in AI-focused businesses, aiming to integrate AI solutions into its offerings. The company has set a target to achieve net profits of around $10.9 billion by 2025. This action aligns with the workforce reduction strategies followed by major technology players such as Google and Microsoft, who are adapting their strategies to keep up with the rapid advancements in AI technologies.