German software giant SAP will cut nearly 3,000 jobs, joining other major tech companies to downsize employees.

The job losses will affect about 2.5 percent of its global workforce.

It comes as the company reported positive fourth-quarter earnings on Thursday, January 26.

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CEO Christian Klein said during the Q4 meeting: “We are further focusing our portfolio in areas where we are strongest to continue our accelerated growth.

“This led us to announce today that we intend to carry out a very targeted restructuring in select areas of the company that will impact up to 3,000 positions.”

The company also considers selling its Qualtrics stake, the American business software provider which it purchased for $8 billion in November 2018.

The enterprise software firm suffered a sharp profit slump last year, plunging 68 percent from the previous year to 1.71 billion euros in 2022.

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However, the company bounces back and its cloud revenue is once again accelerating and expanding at a rate of 90 percent.

Mr. Klein added this was achieved despite the company’s exit from Russia and the continued global macroeconomic volatility.

He suggested last week that the firm would avoid terminating staffers, as it is “in a very strong position.”

Despite the obstacles created by higher interest rates and supply chain disruptions, he remains broadly optimistic about the future of technology.

Source: CNBC

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