SAP Shares Surge on 8,000-Job Restructuring to Build Out AI

German company says job changes won’t reduce total workforce
Software maker’s fourth-quarter revenue tops analyst estimates

WATCH: CEO Christian Klein says SAP is investing over €1 billion in AI over the next two years.Source: Bloomberg

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By Andrew Pollack and Aggi Cantrill

January 23, 2024 at 6:04 PM EST

Updated on

January 24, 2024 at 4:58 AM EST

This article is for subscribers only.

SAP SE shares jumped the most in more than three years after the German software company said it’s planning a restructuring that will affect about 8,000 jobs and increase its focus on artificial intelligence. The company projected that operating profit would rise to roughly €10 billion ($10.9 billion) next year as result.

The shares jumped 6.2% at 10:35 a.m. in Frankfurt after earlier jumping as much as 8.2% to €161.54, the biggest intraday gain since July 2020 and a record high.