Feeds

SAP tightlipped on job cuts in cloud rejig bid

Yet firm reckons it'll be bigger by the end of the year

Build a business case: developing custom apps

SAP is swinging the axe and cutting a number of staff as it re-shapes itself as a provider of cloud services.

The software biz would not say how many of its 66,750 employees will be laid off as part of its latest restructuring exercise, nor when the jobs would go – but called the losses “unavoidable”.

Yet the company claimed it would have more employees by the end of the year, compared to now.

“Our goal is to become simpler, more agile, faster and easier to work with. This is a broad company-wide effort to make SAP more effective and strengthen our innovation leadership,” SAP said in a statement.

“This initiative is about simplifying SAP for the customer, not about job cuts. In fact our plan is that we will have more employees at the end of 2014 than at the beginning of the year. While we cannot avoid restructuring efforts in certain areas we will continue to invest in our innovation leadership and become the cloud company."

The statement follows word of looming redundancies from Bloomberg.

The job cuts will be SAP’s first reduction since 3,000 jobs went under former chief executive Leo Apotheker.

They come as co-chief executive Bill McDermott prepares on May 21 to be approved as the company’s sole CEO at its annual general meeting.

Ahead of McDermott's ascension SAP has lost Vishal Sikka, executive board member for products and innovation, who led Hana - he left for "personal reasons" - and cloud president Shawn Price, who was in post for just four months and whose functions will now be spread among different executives. ®

Boost IT visibility and business value

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
Cutting cancer rates: Data, models and a happy ending?
How surgery might be making cancer prognoses worse
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
VMware's high-wire balancing act: EVO might drag us ALL down
Get it right, EMC, or there'll be STORAGE CIVIL WAR. Mark my words
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?