The mixedresults from SAP,and poor outlook for
2009 has prompted the enterprise resource planning (ERP) company to
cut 3000 jobs and freeze salaries.
The workforce will be cut to 48,500 by the end of 2009, from
51,536 staff, resulting in more than 3000 redundancies. SAP said
the cuts will help the company save up to 350 million euros
annually from 2010.
The company has been affected by a lack of businesses running
big enterprise software projects this year. Some experts believe
SAP has not done enough to reduce the cost of running its ERP
package, by offering the software as a service, which would reduce
the need for IT departments to make large up-front investments in
software, hardware and IT infrastructure.
CEO Henning Kagermann is due to brief city analysts this
afternoon, to give more details of the company's financial woes and
its strategy for 2009.