SAP (NYSE:SAP) layoffs are a hot topic on Thursday as the company plans to reduce its workforce by 3,000 employees.
SAP intends to cut its global workforce by 2.5%. It expects to see 300 million euros to 350 million euros in savings starting in 2024 as a result. This comes as the company seeks ways to reduce costs and tech companies struggle in the current economy.
Included in those cost-cutting plans is SAP intending to sell its stake in Qualtrics International (NASDAQ:XM). It bought the company in 2018 for $8 billion and took it public in 2021 with a valuation of about $21 billion.
According to SAP, the sale of its remaining XM stock would result in a large one-time profit for the company. It’s worth mentioning that this comes as Qualtrics International gains today alongside strong fourth-quarter earnings results.
SAP Layoffs Follow Growth
Like many tech companies, SAP saw a tremendous amount of growth during the Covid-19 pandemic. That came as demand for its cloud services increased during lockdowns. However, that time has passed and inflation is causing many tech companies to lay off employees. Today’s news has SAP joining that trend.
It also brings strong trading of SAP stock with some 1.9 million shares on the move today. This is above the company’s daily average trading volume of 1 million shares. In addition to that, SAP stock is down 1.7% as of Thursday morning.
Investors looking for all the latest stock market news are in the right place!
We’ve got all of the hottest stock news traders need to know about on Thursday! Among that is what’s happening with shares of IBM (NYSE:IBM), Cryptyde (NASDAQ:TYDE) and Mullen Automotive (NASDAQ:MULN) stock. You can read up on this at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.