SAP Shifts Focus to AI, Restricts Travel and Hiring
SAP is redirecting internal spend to focus on AI, slashing travel and expenses budgets, and prioritizing AI-related hiring. The company aims to stay competitive in the enterprise software market, but its shares have fallen 46% in 12 months. SAP will redeploy existing workers to AI roles, rather than laying off more employees.
Key points
- SAP is cutting travel spend and restricting new hiring to focus on AI, citing the technology's impact on enterprise software.
- The company will prioritize AI-related hiring, particularly for engineers, researchers, and specialists, while redeploying existing workers to new AI roles.
- SAP's shares have fallen 46% in 12 months, amid concerns over software performance.
- The company has laid off around 12,000 workers between 2023 and 2024, but aims to maintain its workforce with a shift towards AI roles.
- SAP's CEO expects a 'very different workforce' as the company invests in AI capabilities and technologies.
SAP Shifts Focus to AI, Restricts Travel and Hiring
SAP, the German software giant, is undergoing a significant transformation in response to the growing importance of artificial intelligence (AI) in the enterprise software market. The company has announced plans to redirect internal spend towards AI-related initiatives, slashing travel and expenses budgets in the process.
According to an internal memo seen by Bloomberg, SAP will prioritize AI-related hiring, particularly for engineers, researchers, and specialists, while redeploying existing workers to new AI roles. This move is seen as a strategic attempt to stay competitive in the market, where AI is increasingly shaping the future of enterprise software.
However, SAP's shares have fallen 46% in the past 12 months, amid concerns over software performance. The company has also laid off around 12,000 workers between 2023 and 2024, but aims to maintain its workforce with a shift towards AI roles.
In a statement, SAP's CEO emphasized the importance of investing in AI capabilities and technologies, saying, 'I don’t expect to operate with a smaller work force, but with a very, very different work force.' As the company embarks on this new journey, it remains to be seen how this shift will impact its operations and the wider industry.
Related Topics
- AI in enterprise software
- SAP's transformation
- AI-related hiring
Sources
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