1, March, 2024
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SAP SE’s Ambitious €2 Billion Transformation Program Targets AI Growth

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Germany-based software giant SAP SE has announced a groundbreaking €2 billion ($2.17 billion) company-wide transformation initiative for 2024, geared towards enhancing its focus on artificial intelligence (AI) and related areas.

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The comprehensive program includes significant restructuring efforts aimed at optimizing operational efficiency and positioning the company for future scalable revenue growth.

Key Highlights of SAP SE’s Transformation Program:

  1. Strategic Focus on Generative AI: SAP SE is set to invest more than $1 billion in generative AI, solidifying its commitment to advancing AI-powered technologies. The company will actively support AI-driven startups through its enterprise capital firm, Sapphire Ventures.
  2. Workforce Restructuring: A crucial aspect of the transformation involves a targeted restructuring initiative impacting approximately 8000 employees. SAP SE anticipates managing most of these transitions through voluntary leaves and internal re-skilling programs. Despite these changes, the software giant projects ending the year with a headcount comparable to current levels, presently exceeding 105,000 employees.
  3. Financial Impact and Timeline: The expenses associated with the restructuring efforts will primarily impact the first half of 2024, affecting the operating profit. However, SAP SE foresees the program delivering only a ‘minor’ cost benefit for the year, excluding these restructuring expenses.
  4. Operational Synergies and AI-Driven Efficiencies: SAP SE’s transformation plan aims to reshape its operational setup to capture organizational synergies and leverage AI-driven efficiencies. The overarching goal is to prepare the company for highly scalable future revenue growth.

In unveiling this ambitious transformation program, SAP SE charts a course towards technological innovation and strategic growth in the dynamic landscape of artificial intelligence.

Read Also | SAP SE’s Strategic Overhaul: A €2 Billion Restructuring Plan to Propel Growth in AI-Driven Business Sectors

As the software major navigates these changes, it anticipates not only optimizing its operational structure but also fostering an ecosystem conducive to pioneering advancements in AI technologies.

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