Not even a day after reports swirled that Microsoft was preparing to cut thousands of employees, and as the broader tech sector continues to hemorrhage white-collar workers replaced by chatbots, the latest AI-related job-displacement news is coming from Europe's largest software company.
Bloomberg reports that German enterprise software giant SAP, best known for software that supports large corporations running core business operations, is preparing to slow hiring and cut travel costs as it diverts more capital toward developing AI tools.
More color from the report:
Going forward, SAP will "exclusively focus new hiring on selected profiles only, mainly core Al roles, that are critical for our long-term success," the executive board said in an email to staff on Wednesday evening that Bloomberg reviewed.
Internal travel unrelated to AI development will be paused, and the company will look for ways to cut spending with suppliers.
"As Al reshapes the future of our industry, we are making significant investments in the products and Al capabilities we build, complemented by strategic acquisitions in data and Al where we need additional expertise and technology," the managers said in the memo.
"By balancing where we invest and where we save, we ensure that SAP remains strong, competitive, and well- positioned for the long term."
SAP has also been pursuing acquisitions to bolster its AI offerings and reportedly lost out on a deal to purchase industrial AI and data firm
