SAP spokesman Daniel Reinhardt told TechRadar that SAP is planning a restructure that will shift approximately 2,500 roles from software programming to cloud computing.
Stefan Ries, SAP’s chief of human resources, told Reuters that the cuts are due to SAP’s changing business and the company’s efforts to refocus on cloud computing, rather than part of a cost-reduction plan.
SAP is competing with cloud software providers such as Salesforce.com, NetSuite and Workday as it expands its cloud computing offerings. It’s also competing with traditional rivals Oracle and Microsoft, which — like SAP — are ramping up their own cloud application sales.
SAP is not providing details about which operational areas within the company will suffer the job cuts or in what geographical areas. It wasn’t immediately clear whether the company’s channel operations would be affected, although SAP in recent years has been ramping up its channel sales, which now account for about 40 percent of its revenue.
Worldwide SAP has about 74,400 employees. The company’s total workforce is expected to increase this year, according to the company, despite the job cuts.