- SAP is cutting travel spending to focus on AI-related hiring
- Company shares have fallen 46% in 12 months on software concerns
- Redeploying existing workers is a priority over laying off more employees
SAP is reportedly reviewing how it spends money to free up more money for its AI strategy, with a new internal memo seen by Bloomberg apparently confirming the company’s intentions to restrict new hiring, pause internal travel and reduce other supplier-related expenses.
The company is believed to continue hiring for certain AI roles, showing a shift toward engineers, researchers and other AI specialists, but other roles are likely to see a slowdown or pause.
The company told employees that AI is reshaping enterprise software, so targeting investment to keep it competitive in the long term would be crucial.
SAP redirects internal spending 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 fill new gaps, rather than firing and rehiring. SAP laid off about 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 spend and internal travel,” a company spokesperson said.
“I don’t expect to operate with a smaller workforce, but with a very, very different workforce,” CEO Christian Klein had previously said. New York time (through Invest.com), which implies that employment would continue to evolve.
Despite posting a 6% increase in revenue for its latest quarter, SAP shares have fallen about 46% over the past 12 months amid concerns that its software business may face longevity issues amid the current AI boom.
Follow TechRadar on Google News and add us as a preferred source to receive news, reviews and opinions from our experts in your feeds.
