(Image credit: SAP)
- SAP is cutting travel spend on refocusing on AI-related hiring
- Company shares are down 46% in 12 months over software concerns
- Redeploying existing workers is a priority over laying off more employees
SAP is reportedly revising how it spends money to free up more money for its AI strategy, with a new internal memo seen by Bloomberg seemingly confirming the company’s intentions to restrict new hiring, pause internal travel and reduce other spend related to suppliers.
It’s believed the company will still continue hiring across certain AI roles, showing a shift toward AI engineers, researchers and other specialists, but other roles will likely see a slowdown or pause.
The company told employees that AI is reshaping enterprise software, so targeting investment to keep it competitive long-term would be crucial.
SAP redirects internal spend to focus on AI
According to the report, citing an internal email, company travel unrelated to AI projects and customer relations has been suspended. The company also wants to redeploy existing workers to plug new gaps, rather than firing and rehiring. SAP laid off around 12,000 workers between 2023 and 2024.
“We are prioritizing investments in AI-related capabilities, talent, and technologies while applying greater discipline to hiring, external spending, and internal travel,” a company spokesperson said.
“I don’t expect to operate with a smaller work force, but with a very, very different work force,” CEO Christian Klein had previously told the New York Time (via Investing.com), implying that jobs would continue to evolve.
Despite posting a 6% increase in its most recent quarter’s revenue, SAP shares have dropped around 46% over the past 12 months amid concerns that its software business might face longevity struggles amid the ongoing AI boom.
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