SAP cuts 3,000 Jobs
SAP, the biggest business software company in the world, has announced that it will be cutting 3,000 jobs whilst warning that cuts may go even further. It has also frozen the wages of the entire 51,500 person workforce.
In the recent years of booming economies and buoyant markets, SAP had been enjoying double-digit growth. Recently however, the German group has been forced to deal with diminishing demand for its products, so much so that executives are preparing employees for the prospect of even more drastic measures than these.
“Perhaps we will have to talk about even more decisive measures than we can today,” said Henning Kagermann, SAP’s co-chief executive to reporters. Kagermann, who steps down later this year, appeared to be in no mood for seeing the bright side, adding, “In 2009 we have arrived in a new world. The economic crisis is here to stay.”
The SAP cuts are representative of a downward trend within the industry, coming on the back of Microsoft’s announcement that it will losing 5,000 jobs this year.
The redundancies will save an estimated €350 million Euros (£325 million pounds). SAP have refused to give details of which departments will be worst hit.
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