SAP’s AI Restructuring Plan Targets 8,000 Roles as Workforce Strategy Evolves

Restructuring linked to AI

SAP announced a EUR 2 billion restructuring affecting 8,000 employees as it sought to refocus on artificial intelligence capabilities. The company explicitly identified AI and automation as a primary driver of the workforce reduction, placing the plan within a broader shift in enterprise software toward operations designed around AI capabilities.

Most of the affected employees were expected to be handled through voluntary buyouts and retraining, rather than through compulsory job cuts. The announced 8,000 figure is a restructuring total, not an estimate of future annual reductions.

The move reflects pressure on software companies to reshape functions that may be susceptible to automation while building capacity in areas connected with AI and data management.

Later plans describe gradual reductions

A report published on Thu 24th Jul, 2025 described a different approach outlined by SAP management: reducing the workforce gradually by one to two percent annually rather than through large-scale layoffs.

The report did not reconcile that annual reduction approach with SAP’s earlier restructuring affecting 8,000 employees. It described the later policy as a change in workforce management, with employee representatives raising concerns about its implications for workplace culture and job security.

Eberhard Schick, head of SAP’s works council, argued that the company should prioritise employee development over severance spending. He called for greater investment in training, particularly in artificial intelligence-related fields.

Automation changes sales and development

SAP management identified potential savings in sales and software development through automation and AI. Christian Klein said the technology could support sales preparation for client meetings and documentation, while retaining a human role in sales.

The company is also expanding its partner network, particularly with consulting firms, and shifting some sales responsibilities to those partners. The strategy is intended to optimise operations while maintaining people working in sales and customer interactions.

In software development, automation may reduce demand for some roles, according to the report. At the same time, work related to AI and data management is expected to grow. Klein said that advances in AI would transform virtually every job function at SAP.

SAP’s chief executive also said the company planned to create positions in growth areas. Under that approach, its total employee count would continue to rise, but more slowly than revenue growth.

The workforce changes therefore combine an announced restructuring linked explicitly to AI and automation with later plans for gradual annual staff reductions. The available information attributes some pressure on roles to automation, while also describing wider operational changes, partner-network expansion and investment in AI-related skills.

Sources

• SAP's Workforce Reduction Plans Spark Concerns Among Employee Representatives