SAP to lay off 3,000 jobs

SAP SE plans to sell its remaining stake in Qualtrics International Inc. and cut nearly 3,000 jobs during the year as the company tries to boost profits.

According to a statement released on Thursday, the German software company expects adjusted operating profit for 2023 to rise to a range of 8.8 billion euros ($9.6 billion) to 9.1 billion euros. This number is above the average 8.65 billion euros estimated by analysts participating in the Bloomberg survey.

SAP SE plans to cut about 3,000 jobs this year as the company looks for ways to increase profits. Layoffs represent 2.5 percent of their employees.

With this breakthrough, SAP joins a growing list of tech companies that have made layoffs and are looking for ways to cut costs after share prices fell last year.

In a statement to the press on the matter, the SAP CEO said that the layoffs were a strategic move and “not related to the momentum of the business”. On the other hand, company shares have fallen by about 12 percent in the last 12 months.

The company said the reason for the restructuring and Qualtrics’ sales motivation was to refocus on its biggest business, cloud services.

The cloud business had become SAP’s largest revenue stream last year. Earlier this month, Moody’s downgraded SAP’s outlook due to the company’s change.