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SAP says to restructure business, sets longer-term guidance

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SAP says to restructure business, sets longer-term guidance
FILE PHOTO - The logo of German software group SAP is pictured at its headquarters in Walldorf, Germany, May 12, 2016. REUTERS/Ralph Orlowski/File Photo GLOBAL BUSINESS WEEK AHEAD   -   Copyright  Ralph Orlowski(Reuters)
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WALLDORF, Germany (Reuters) – Business software company SAP said on Tuesday it would undertake a company-wide restructuring as it presses ahead with its business transformation, stressing its ambition to more than triple its cloud business by 2023.

Europe’s most valuable technology company said it would take restructuring charges of 800-950 million euros, mainly in the first quarter and saw cost benefits of 750-850 million from 2020.

The company will reassign some employees and offer early retirement to others, but expects its overall head count to be higher at the end of this year, CFO Luka Mucic told reporters on a call.

“This is not a cost-cutting programme – it’s a fitness programme and a simplification,” said Mucic.

(Reporting by Douglas Busvine; editing by Thomas Seythal)

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