SAP, a leading technology company, is embarking on a significant restructuring initiative with a clear focus on prioritizing the growth of artificial intelligence (AI) and upskilling its workforce. In a departure from the trend of technology companies cutting jobs in favor of AI development, SAP is taking a distinctive approach by committing to both restructuring and upskilling. The company plans to reshape 8,000 roles to concentrate on expanding in AI-driven business areas, aiming to maintain its current headcount by the end of 2024 amidst a global landscape marked by substantial job cuts from companies like Amazon and Google.This strategic move towards AI has already resulted in a notable surge in SAP shares, soaring by 7%, following the company's projection of cloud revenue growth exceeding €21.5 billion (US$23.5 billion) and an anticipated total revenue surpassing €37.5 billion (US$41 billion) in 2024.

SAP's tech advancements in the past year include experimenting with OpenAI’s ChatGPT and integrating the technology into its products. Collaborations with industry giants like Google Cloud have further strengthened SAP's position, enabling customers to enhance their digital transformation and AI and machine learning development. With the launch of its Gen AI assistant Joule and a commitment to investing over US$1 billion in AI-powered technology start-ups through Sapphire Ventures, SAP is gearing up for fundamental changes in its business landscape driven by generative AI (Gen AI). The company is poised to intensify its focus on strategic growth areas, particularly business AI, and is set to transform its operational setup to capture synergies, AI-driven efficiencies, and prepare for scalable revenue growth.

Recognizing the pivotal role of AI upskilling for sustained business growth, SAP plans to implement a company-wide restructuring program in 2024. This initiative, primarily concentrated on AI-related positions, aims to be addressed through voluntary leave programs and internal re-skilling strategies. In a rapidly evolving digital landscape, where businesses face ongoing threats from malicious actors exploiting infrastructure, the need for employee upskilling is underscored. In response to the rapidly advancing AI technology and the resulting talent shortages, SAP's commitment to upskilling aligns with the broader industry trend. According to an AWS report, 90% of workers anticipate AI integration into their daily work by 2028, emphasizing the importance of recruiting highly-skilled talent and implementing robust staff training programs.