SAP Labs Cuts 300 Executive Jobs Across Multiple India Locations

• ByStartupStory     |    February 24, 2023

SAP Labs, the research and development unit of German technology company SAP, recently laid off approximately 300 executives in India, with the majority of the job cuts affecting its Bengaluru and Gurgaon offices.

As per an anonymous source, the recent job cuts at SAP Labs’ Bengaluru and Gurgaon offices were a result of the shutdown of a global delivery center that housed specialized development roles for SAP implementation projects. The affected employees, some of whom had a decade or more of experience, have been given severance packages that provide benefits and compensation based on their years of service.

In response to the recent layoffs at SAP Labs, a company representative stated that the firm has been undergoing a strategic transformation for the past two years. As part of this re-prioritization, SAP has shifted its focus towards delivering value to existing and prospective customers in the cloud and high-growth sectors. The spokesperson acknowledged the challenging nature of the decision, stating that the company is fully aware of the personal impact that these changes have had on affected employees.

SAP Labs, which currently employs around 19,000 workers in India, is reportedly working on a second R&D campus in Bengaluru, with plans to double its capacity in the country by 2025. Despite the recent job cuts at its Bengaluru and Gurgaon offices, some affected employees remain optimistic about their prospects of being rehired by SAP, according to an insider source. Workers who have been impacted by the layoffs have a two-month notice period during which they hope to secure new positions. SAP Labs’ operations in India span five locations, including Pune, Mumbai, Gurgaon, Hyderabad, and Bengaluru.

India is home to the largest workforce for German software company SAP outside of its global headquarters. SAP recently disclosed plans to reduce its global workforce by 2.5%, or approximately 3,000 positions, as it seeks to control expenses and concentrate on expanding its cloud operations.

Follow Startup Story