Seven months after launching Artificial Intelligence (AI) –Concentrated Restructuring plans, Financial Statements The company said on Monday (July 22) that it had raised its 2025 operating profit target to reflect the efficiency gains it expects from the program.
“We continued to execute upon SAP’s CEO said the company is pursuing its transformation program with strict discipline to only rehire people with the skills it needs. Christian Klein “As you can see, we’re increasing the volume of our programs. That’s why we’re can do “We are announcing an increase in Ambition 2025 bottom line of approximately 200 million euros.”
SAP now expects non-IFRS operating profit to be 10.2 billion euros (about $11.1 billion) in 2025, up from its previous forecast of 10 billion euros (about $10.9 billion). Earnings Release.
Enterprise application software companies Reorganization Plan The company announced in January that it would focus on business AI and other key strategic growth areas. Own SAP has built an operational structure to leverage AI to drive efficiencies. The company also said it expects 8,000 employees to be retrained or leave under a voluntary separation program.
SAP said in its earnings call on Monday that it expects the restructuring to affect 9,000 to 10,000 employees as it works to ensure the company’s skill sets and resources are aligned to meet future needs. It expects its headcount at the end of 2024 to be similar to that at the end of 2023 as it reinvests in strategic growth areas, particularly business AI.
SAP expects to complete its restructuring program in early 2025, according to the release.
As SAP continued to restructure in the second quarter, it also made several AI-related moves, according to its earnings release, including: Add AI function supply chain The solutions we provide to our customers, IBM that What’s Included New generative AI features and expanded collaboration and Amazon Web Services (AWS) What’s Included Cloud ERP (Enterprise Resource Planning) experience Generative AI offering.
Klein said on the conference call that SAP is receiving more positive feedback than ever before. product, SAP offers business AI products, so it can embed the technology into its customers’ operating system, which is why everyone sees SAP as a major AI player. The company’s AI strategy is key He played a key role in all the deals closed during the quarter.
During its earnings report on Monday, SAP also revealed that cloud revenue grew 25% year over year during the quarter, outpacing total revenue. Revenue, Which 10% increase.
“Our growth momentum remained strong in the second quarter despite a volatile environment in the software industry,” Klein said on the conference call. “More and more customers are moving to the cloud, and SAP’s business AI capabilities make our portfolio even more attractive.”