SAP to cut 3,000 jobs

SAP is to shed 3,000 jobs in a 'cost-containment measure'

Enterprise software vendor SAP revealed on Wednesday that it plans to shed some 3,000 jobs.

The company said that the "cost-containment measure" is being taken in anticipation of impending economic turmoil.

"We believe the measures will allow us to adapt to the tough market conditions and ensure the long-term competitiveness of the company," said SAP co-chief executive Leo Apotheker.

"Moreover, we expect 2009 to be a year of limited visibility, making it increasingly difficult to project sales in this environment."

SAP expects to save €300m to €350m (£275m to £321m) annually from the cuts.

The layoffs come despite a strong 2008 for the company. SAP recorded €8.46bn (£7.77bn) in revenues on the year, a 19 per cent increase compared with 2007. Operating income was up 24 per cent on the year, while software revenues increased by 10 per cent.

Co-chief executive Henning Kagermann said that the numbers in the first half of the year were far better than those in the second half, when the economic crisis hit in full.

"2008 can be described as a year having two completely opposite halves, where a strong first half performance was greatly disrupted late in the third quarter by the beginning of the worst economic and financial crisis the world has witnessed in decades," said Kagermann.

"Nevertheless, in total we had a good year amid a very tough economic climate."

The cuts at SAP come just one day after thousands of jobs were lost at Texas Instruments and IBM in what has been a brutal start to 2009.