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Cloud Computing Focus Leads to Layoffs at SAP

The enterprise software maker is delivering more applications as a service.


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SAP has announced that it will be conducting layoffs across all of its divisions as a result of its move toward delivering more products on a software as a service (SaaS) basis. An unnamed source told Bloomberg that the job reductions "wouldn’t number in the high thousands and wouldn’t result in SAP exiting lines of business." And an SAP spokesman said that the company would end the year with more than 67,000 employees, its current headcount.

In addition to transitioning toward cloud computing, SAP is also transitioning from co-CEOs to a single CEO. The company has recently faced increased pressure from competitors like Oracle, Salesforce.com and Workday.

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