# SAP to cut 3,000 jobs, explore Qualtrics stake sale Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-01-26 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: SAP Announces 3,000 Job Cuts and Stake Sale in Cost-Cutting Meta Description: Get the latest news on SAP's plan to cut jobs and sell its Qualtrics stake, focusing on cloud business growth and cost-saving efforts. URL: https://financedigest.com/sap-to-cut-3000-jobs-explore-qualtrics-stake-salehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-01-26t083839z1lynxmpej0p09drtroptp4sap-results-1736814537397-compressed.jpg) By Kirsti Knolle and Supantha Mukherjee BERLIN/STOCKHOLM (Reuters) -SAP said on Thursday it planned to cut 3,000 jobs, or 2.5% of its global workforce, and explore the sale of its remaining stake in Qualtrics, as the Germany software company looks to cut costs and focus on its cloud business. SAP is the latest tech company to cut jobs after companies including Alphabet’s Google, Microsoft and Amazon announced thousands of layoffs to cut costs as they brace for tougher economic conditions. We expect only a moderate cost saving impact for 2023, and a more pronounced one in 2024, about 300 [million euros to 350 million in run rate savings as of 2024,” Chief Financial Officer](https://www.financedigest.com/black-panther-sequel-ignites-box-office-with-330-million-global-debut.html "‘Black Panther’ sequel ignites box office with 0 million global debut") Luka Mucic said in a call with journalists. In Germany, where SAP is headquartered, the company will [cut slightly more than 200 jobs](https://www.financedigest.com/icrc-to-cut-some-1500-jobs-as-humanitarian-budgets-seen-sliding.html "ICRC to cut some 1,500 jobs as humanitarian budgets seen sliding"). The layoffs come after SAP reported a [30% revenue](https://www.financedigest.com/renault-revenues-rise-30-in-q1-on-higher-sales-and-prices.html "Renault revenues rise 30% in Q1 on higher sales and prices") increase in its cloud business in the fourth quarter, helped by strong demand for its software. SAP has also started the process to [sell its stake](https://www.financedigest.com/intercos-fund-shareholders-l-catterton-otpp-sell-6-stake-at-7-discount.html "Intercos fund shareholders L Catterton, OTPP sell 6% stake at 7% discount") in Qualtrics. It bought the company for $8 billion in 2018 and took it public in 2021 at a [valuation](https://www.financedigest.com/allianz-puts-n26-stake-up-for-sale-at-3-billion-valuation-ft.html "Allianz puts N26 stake up for sale at billion valuation – FT") of nearly $21 billion. Currently, survey-software seller Qualtrics has a [market value of $7 billion](https://www.financedigest.com/b2b-telecommunication-market-to-more-than-us-27-billion.html "B2B Telecommunication Market to more than US$ 27 billion") and SAP has a 71% stake. (The sale) would result in a quite [significant one-time gain,”](https://www.financedigest.com/smart-mining-market-projected-to-gain-significant-value-by-2016-2025.html "Smart Mining Market Projected to Gain Significant Value by 2016-2025") Mucic said. This would materially [increase the profit](https://www.financedigest.com/4-tips-for-landlords-to-increase-rental-property-profits.html "4 Tips for Landlords to Increase Rental Property Profits") performance of SAP, but it’s currently not reflected in the outlook. SAP forecast [core operating profit of 8.8-8.9 billion euros](https://www.financedigest.com/hellofresh-sees-2023-core-profit-of-460-540-million-euros.html "HelloFresh sees 2023 core profit of 460-540 million euros") at constant currencies for this year. It also expects cloud revenue at constant currencies for 2023 to [rise to 15.3-15.7 billion euros](https://www.financedigest.com/euro-zone-economic-sentiment-rises-in-january-to-seven-month-high.html "Euro zone economic sentiment rises in January to seven-month high"), from 12.56 billion euros last year. While analysts had raised concerns that SAP’S lucrative cloud business might take a hit with other companies tightening their budgets due to [economic uncertainty](https://www.financedigest.com/combatting-economic-uncertainty-in-2023-with-the-payments-sector-2.html "Combatting economic uncertainty in 2023 with the payments sector"), SAP has been signing more customers. We are going to [announce a unique strategic](https://www.financedigest.com/incentive-fm-group-announces-latest-strategic-me-acquisition.html "INCENTIVE FM GROUP ANNOUNCES LATEST STRATEGIC M&E ACQUISITION") partnership with BMW betting on SAP on all dimensions – one of the biggest deals ever, which was signed yesterday,” Chief Executive Christian Klein said. ($1 = 0.9159 euros) (Reporting by Kirsti Knolle and Supantha MukherjeeEditing by Miranda Murray and Mark Potter) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---