SAP to Shed 3,000 Jobs, Despite Strong Q4

The German ERP provider announces a significant workforce reduction on the same day it delivers notable gains in preliminary fourth quarter numbers.


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Posted on Jan 28, 2009

Despite a healthy showing in its most recent quarter, enterprise applications giant SAP is bracing for leaner times to come with a plan to shed approximately 3,000 workers, the company revealed Wednesday.

In a preliminary announcement of its fourth-quarter and full-year financial results, SAP said total revenue reached €3.49 billion in the three-month period ended Dec. 31, 2008, an 8% year-over-year increase. While revenue from subscriptions and other software-related services jumped 40% to €74 million, and support revenue grew 26% to €1.27 billion, software revenue dropped 7% to €1.32 billion. The net result for the software and software-related services category was an 8% increase to €2.67 billion in the quarter.

Revenue from professional services, including consulting and training, was €808 million, 9% higher than a year ago.

Net income increased 13% in the period to €850 million, compared with €752 in the fourth quarter of 2007.

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