SAP, the software solutions company, has revealed that their restructuring programme, which was first announced in January, will impact between 9,000 to 10,000 jobs by the beginning on 2025.

The majority of the restructuring will be accomplished via re-skilling measures and voluntary leave, the company said.

Despite the restructuring, SAP expects its overall headcount to remain close to its 2023 year end number, as it continues to grow in strategic areas despite the affected jobs.

According SAP, current costs associated with the restructuring have reached around €3bn, an increased from expected costs.

In quarter two of 2024, the company recorded €600m costs associated with the reorganisation, raising the total to €2.9bn.

SAP attributed this cost increase to the large number of employees opting for voluntary leave.

The company appears to be doing well despite the reorganisation, with strong financial results from Q2 2024.

Cloud revenue rose by 25% to €4.15bn, and the current cloud backlog grew 28%, with total revenue up by 10% to €8.29bn.

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Gross profit from cloud increased by 29%, reaching €3.03bn.

The company claims its restructuring programme enunciates its aim to come out ahead of the AI revolution in business software.

As data becomes ever more essential to growing adoption of AI, cloud purveyors are attempting to position themselves at an advantage to businesses trying to adopt the data-dependent technology.