SAP to cut 2250 jobs

Software giant SAP will cut around 2250 jobs while creating a similar number in expanding parts of the company.

Last year SAP - which employs about 75,000 workers worldwide - cut a similar percentage of posts, equivalent to three percent of its global workforce, said Stefan Ries, SAP's chief of human resources.

"In principle this is a continuation of the [company's response to] changes in market circumstances," Ries said, adding the cuts were not part of a cost reduction plan but a refocusing of the company.

He said SAP expected to create about 2200 jobs this year in growth areas such at its cloud business, its in-memory database HANA, and Concur, the expenses software maker it bought last year for US$7.3 billion.

SAP has launched a high-stakes overhaul of its core software line, aiming to convince major corporate customers that its software can run their most critical applications to predict business conditions.

Established software makers such as SAP are battling to boost internet software sales and fend off pure cloud-based rivals such as Salesforce.com and Workday.

SAP workers in Europe can make use of voluntary leave arrangements. In Germany, France, the United Kingdom and the United States, SAP will in addition be offering early retirement.

SAP said it excludes forced redundancies in Europe.