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SAP Restructuring To Affect 8000 Jobs, Raises '24 and Cut '25 Op Profit Target

TECHNOLOGY


  • Q4 Results: Q4 Rev €8.5 billion vs. c.€8.35bn, After-Tax Profit €1.2bn vs. c.€1.3bn, FCF €1.66bn (+16% to €5.1bn for FY23).
  • SAP raised targets: 2024 Op profit of €7.6-7.9bn (+17% to 21% at constant currencies) though 2025 target cut from €11.5bn to €10bn on share-based compensation expenses, 2024 FCF ~€3.5bn including €2bn. restructuring/compliance costs rising to ~€8bn in 2025 (prev 2025 target of €7bn).
  • SAP's 2024 restructuring to affect about 8,000 positions, expected to be covered via “voluntary leave programs and internal re-skilling” and SAP expects to exit 2024 at a similar headcount. The program emphasizes AI and operational scalability.
  • BBG reports gains of close to 3% in the pre-market. EUR credit spreads streaming wider at the short end (EUR 25s OAS +5bps).

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