SAP SE Shares Reach Record High As They Unveil Bold Plans for AI-Led Future
Shares of the German software giant SAP SE have surged to a record high, experiencing a sudden 7% increase following the company's announcement of robust financial results and a strategic restructuring plan. SAP's focus on artificial intelligence (AI) is evident in its pledge to invest €2 billion ($2.2 billion) in a 2024 program, aiming to reshape 8,000 roles. The restructuring is set to affect over 7% of SAP's108,000 full-time workforce.
The company has acknowledged the transformative power of AI and plans to retrain employees with AI skills and facilitate voluntary redundancy programs. Investment strategist Jürgen Molnar noted, "The right adjustments are being made, and the company is being reorganised to prepare it for the age of artificial intelligence."
SAP's dedication to AI extends beyond internal restructuring to partnerships with innovative AI startups, with plans to invest over $1 billion through its investment arm, Sapphire Ventures. The move aligns with the broader trend in the tech industry, where major players like Google and Microsoft have initiated layoffs to shift focus towards AI and automation. SAP's Chief Financial Officer, Dominik Asam, emphasised the company's achievement of double-digit non-IFRS operating profit growth in 2023, despite a challenging macro environment.
With a focus on business AI and a commitment to innovation, SAP appears poised to lead in the evolving landscape of technological advancements.
