Observed Signal · Jan 26, 2023 · M&A - Rumour · Source: CMSWire · Impact: 3/5 · Sentiment: Neutral
SAP Announces Layoffs, Explores Sale of Qualtrics Stake
SAP, the world's third-largest software company, announced a targeted restructuring affecting up to 3,000 positions, or about 2.5% of its global workforce. During its Q4 2022 earnings call, CEO Christian Klein also said SAP will explore selling its stake in Qualtrics, the experience management software firm it acquired for $8 billion in 2019. The restructuring is expected to cost between $272 million and $381 million. Qualtrics reported full-year 2022 revenue of $1.45 billion, up 36% year over year. Following the announcement, Qualtrics shares jumped 28% to $14.94. Klein said any final decision on the stake sale depends on market conditions, acceptable terms, and approvals. Qualtrics had earlier announced roughly 270 layoffs in January. Both companies said they intend to remain partners if a transaction occurs.
SAP is a global enterprise software leader; its plan to divest Qualtrics, a major CX and experience management platform, would reshape the MarTech landscape and follows a broader wave of tech layoffs.
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Key Takeaways & Evidence Grounding
- SAP announced a restructuring affecting up to 3,000 positions, about 2.5% of its global workforce.
- SAP said it will explore a sale of its stake in Qualtrics, which it acquired in 2019 for $8 billion.
- SAP estimated restructuring costs at between $272 million and $381 million.
- Qualtrics reported full-year 2022 revenue of $1.45 billion, up 36% year over year.
- Qualtrics' share price rose 28% to $14.94 following SAP's announcement.
- Qualtrics eliminated approximately 270 roles, about 5% of its workforce, on Jan. 11, 2023.
Connected Companies & Entities
12 Entities mapped“Qualtrics, the customer and employee experience management software firm SAP purchased in 2019 for $8 billion....”
“SAP — the world's third largest software company — is the latest tech titan to announce layoffs....”
“including around 18,000 employees at Amazon...”
“12,000 at Google's parent company Alphabet...”
“10,000 at Microsoft...”
“8,000 at Salesforce...”
“450 at Informatica...”
“reportedly 3,900 cuts announced yesterday at IBM...”
“Twitter, Zillow, Peloton, Cisco and others followed suit....”
“At the end of 2022, Meta announced layoffs for 11,000 employees...”
“Twitter, Zillow, Peloton, Cisco and others followed suit....”
“Twitter, Zillow, Peloton, Cisco and others followed suit....”
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