German enterprise software firm SAP will be cutting up to 3,000 jobs, or about 2.5% of its workforce, becoming the latest tech giant to announce significant layoffs.

SAP's CEO, Christian Klein, stated that the company is focusing its portfolio in areas where they are strongest to continue their accelerated growth, which led to the targeted restructuring. The company's CFO, Luka Mucic, said the company expects savings of around $327 million to $382 million in run rate savings from the layoffs.

SAP reported positive fourth-quarter results during their earnings call. Klein reported that their cloud momentum accelerated in the fourth quarter with S/4HANA, their enterprise resource planning software, and that cloud revenue was also growing at 90%. He also stated that the company met their guidance for the full year, with cloud revenue rising 24%, up five percentage points from 2021.

Klein also stated that the company will explore the sale of its stake in Qualtrics, as they focus on its core. SAP currently holds 71% of Qualtrics on an undiluted basis and acquired American business software provider Qualtrics in 2018 for $8 billion.