The enterprise software manufacturer SAP wants to cut 3,000 jobs, 2.5% of employees, to reduce costs by up to 350 million euros annual from 2024, after lowering the attributable net profit by 56% in 2022, to 2,290 million euros.
The CEO of SAP, Christian Klein, announced this Thursday when presenting the 2022 balance sheet the restructuring plan that affects 200 jobs in Germany, less than other countries.
The job cuts will have costs of between 250 and 300 million euros that will be accounted for mainly in the first quarter of this year, according to the financial director, Luka Mucic.
The objective of SAPwhich will also cut costs in other areas of the company, is to focus on strategic growth areas and accelerate the transformation to an Internet-based cloud computing services company.
The IBM technology announced this Wednesday a reduction in its profit in 2022 of 71% year-on-year due to expenses related to the pensions of its workforce, previously announced, and also added to the layoffs in the sector with a cut of 3,900 employees.
The company reported earnings of 1.639 million dollars in the year, a figure that is explained in the charge of 5.900 million that was recorded in the third quarter due to an administrative matter: the transfer of the pension plans of some 100,000 employees to two insurers.
Meanwhile, the company’s annual turnover rose 5% to $60.53 billion, more than a third of which came from its growing hybrid cloud business ($22.4 billion, up 11%), according to a statement.
After publishing these data at the close of the stock market on Wall Street, IBM indicated to various economic media that it also plans to lay off 3,900 employees (1.5% of the workforce), a measure that is related to the separation as independent companies from Kyndryl in 2021 and Watson Health in 2022.
As a result of these layoffs, the technology company expects to write down a charge of 300 million dollars in the first quarter of 2023, according to CNBC.
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