SAP SE shifts resources to artificial intelligence development, pausing non-AI hiring and travel to reduce costs and counter competition.
SAP SE (NYSE:SAP) is halting non-essential hiring and internal travel as part of a cost-saving drive to redirect funds toward artificial intelligence. The company will focus new hires exclusively on core AI roles critical to long-term growth, while also reducing spending with suppliers.
The move follows a broader reorganization led by CEO Christian Klein, who is taking direct oversight of management to prioritize AI. SAP aims to strengthen its position through strategic acquisitions, including potential deals in industrial AI and data, such as Cognite.
The company is responding to industry shifts as AI reshapes enterprise software, investing heavily in AI capabilities and products to fend off emerging competitors.