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SAP to axe 2,500 workers over cloud shift

ERP software provider SAP is to cut 2,500 jobs as more software is moved over to the cloud.

The cost-cutting exercise should improve customer service, says the German-based company.

Around 67,000 people are currently employed by the firm, which declined to give an exact total figure for the proposed cuts. However, a source told Reuters that around 1,500 to 2,500 roles could be in jeopardy and that cuts would affect all regions.

"The number is not yet definite and there are still checks being made as to whether positions overlap or are unnecessary," the source said.

A SAP spokesperson explained the move in a statement, which outlined the company's aim to become "simpler, more agile, faster and easier to work with."

"This initiative is about simplifying SAP for the customer, not about job cuts. In fact our plan is that we will have more employees at the end of 2014 than at the beginning of the year. While we cannot avoid restructuring efforts in certain areas we will continue to invest in our innovation leadership and become the cloud company."

SAP claimed that 3,000 new jobs would also be created, and that there would be a net increase in headcount.

The cuts come alongside the company's extension of analytics solutions to the SAP HANA cloud, offering firms greater insight into business intelligence, agile visualisation, performance management, and governance, risk and compliance.

The company's ERP solutions aim to improve the innovation process within organisations.