- SAP Reduces Travel Spending by Refocusing on AI Recruiting
- The company’s shares fell 46% in 12 months due to software issues.
- Redeployment of existing workers is a priority rather than laying off more employees.
SAP is reportedly reviewing how it spends money to free up more money for its AI strategy, with a new internal memo seen by Bloomberg seemingly confirming the company’s intentions to restrict new hires, suspend internal travel and cut other supplier-related expenses.
The company is believed to continue recruiting for some AI positions, showing a shift toward engineers, researchers, and other AI specialists, but other positions will likely see a slowdown or pause.
The company told its employees that AI is reshaping business software and therefore targeted investments will be crucial to maintain long-term competitiveness.
SAP shifts internal spending to focus on AI
According to the report, citing an internal email, corporate travel unrelated to AI projects and client relationships has been suspended. The company also wants to redeploy existing workers to fill new gaps, rather than firing and rehiring them. SAP laid off around 12,000 workers between 2023 and 2024.
“We are prioritizing investments in AI-related capabilities, talent and technologies while applying greater discipline to recruiting, external spending and internal travel,” a company spokesperson said.
“I don’t expect to operate with a reduced workforce, but with a very, very different workforce,” CEO Christian Klein previously told New York Time (via Investir.com), which implies that jobs would continue to evolve.
Despite a 6% increase in revenue in the most recent quarter, SAP shares have fallen about 46% over the past 12 months on concerns that its software business faces longevity issues amid the current AI boom.
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