German software firm SAP has announced a €2 billion restructuring plan, which includes 8,000 job cuts.

The restructuring is part of the company's focus on growth in AI-driven business areas.

SAP is aiming for significant growth in its cloud and software products, with the cloud division expected to be the main driver.

Investments will be made in retraining employees with AI skills and integrating generative AI technology into the company's products.

Despite the job cuts, SAP expects its total employee count to remain similar in 2024 due to hiring in strategic growth areas.

SAP's shares rose by 5% following the announcement and the company raised its revenue forecast for cloud services.

The company's CEO aims to accelerate cloud revenue and increase subscription sales.

SAP expects significant growth in cloud and software revenue for FY 2024, with an operating profit of €7.6 billion to €7.9 billion.