SAP, a $190 billion software company, is cutting 7% of its global workforce, about 8,000 jobs, due to the increased efficiency brought by AI.
The restructuring will cost 2 billion euros but is expected to enable new investments in IT and automation for growth in AI-related businesses.
This move reflects a trend of job cuts in the tech industry, as AI allows for faster task completion and reduces the need for employees.
The announcement led to a 6% increase in SAP’s shares, signaling investor approval despite modest net savings.
The broader tech industry has seen over 400,000 job cuts due to over-hiring during the pandemic recovery, making IT workers increasingly vulnerable.
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