SAP to cut between 1,500-2,500 jobs as cloud takes over

STUTTGART Germany Thu May 15, 2014 11:44pm IST

Logo of German company SAP is pictured at the CeBit computer fair in Hanover, March, 6, 2012. REUTERS/Fabian Bimmer/Files

Logo of German company SAP is pictured at the CeBit computer fair in Hanover, March, 6, 2012.

Credit: Reuters/Fabian Bimmer/Files

Related Topics

Stocks

   

STUTTGART Germany (Reuters) - German software company SAP is planning to cut between 1,500 and 2,500 jobs as software programmes switch to the cloud, meaning fewer onsite staff are required, a source said on Thursday.

SAP, which employs a total of around 67,000 people, had said on Wednesday that there would be targeted job cuts, but declined to say how many. A company spokesman declined to comment on Thursday.

"The number is not yet definite and there are still checks being made as to whether positions overlap or are unnecessary," the person with knowledge of the matter told Reuters, adding that the cuts would affect all regions and areas.

However, SAP also plans to create about 3,000 new jobs this year, leading to a net increase in staff, the source said.

Cloud computing allows businesses to reduce their costs by ditching bulky servers for network-based software in their own offices and using remote data centres run by technology companies such as SAP.

(Reporting by Ilona Wissenbach; Writing by Victoria Bryan; Editing by Philipp Halstrick and Elaine Hardcastle)

FILED UNDER:

Reuters Showcase

GDP Growth

GDP Growth

India revises up 2013/14 GDP growth to 6.9 percent.  Full Article 

Pharma Deal

Pharma Deal

Sun Pharmaceutical wins U.S. approval to buy Ranbaxy  Full Article 

Adani Restructuring

Adani Restructuring

Adani hives off power, ports businesses to boost growth.  Full Article 

Bank of Baroda

Bank of Baroda

Q3 net profit down 69 pct on higher provisions  Full Article 

Trading Fees

Trading Fees

BSE slashes fees in FX derivatives battle with NSE  Full Article 

SpiceJet Turnaround

SpiceJet Turnaround

SpiceJet board approves up to $243 mln share sale plan  Full Article 

Currency Market

Currency Market

RBI urges companies to hedge FX exposure  Full Article 

Banking Sector

Banking Sector

Banks say no room to cut lending rates, thwarting RBI easing  Full Article 

Reuters Poll

Reuters Poll

RBI seen holding rates steady on Tuesday, minority of analysts expect cut  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage