The impact of planned job cuts in German international business software company SAP on its Galway plant was unclear last evening as the company said it could not give a regional breakdown of the more than 3,000 jobs it plans to shed this year.
The group, which has 400 employees at its premises in Parkmore, plans to cut its worldwide workforce of 51,500 to 48,500 this year as it prepares for a substantial drop in growth in 2009. A spokesperson for the company told the Galway Advertiser yesterday that it cannot provide a regional breakdown of where these jobs will be shed. The company employs a further 400 at its plant in Dublin.
It is understood the company aims to implement as many job cuts as possible through the non-replacement of staff who leave the company of their own volition.
Yesterday’s announcement followed the company’s annual press conference in which it outlined the fourth quarter and 2008 year end preliminary results. While the company reported double digit growth for 2008 it outlined in an e-mail sent to all employees yesterday that it expects a sharp drop in business this year.
“Unlike in past years, which were characterised by double-digit growth rates, the outlook for 2009 is completely different,” the statement read. “For this reason, we will have to intensify our cost-savings efforts by implementing additional measures.
“After an exhaustive and thorough evaluation of all options, we have concluded that a reduction in the number of persons employed is necessary. This is not an easy step for us to take, and we are fully conscious of the implications of this decision.
“As SAP is a global company, we will consider each region and each line of business at all levels. We are looking for fair solutions according to accepted practice, and we will make this process as transparent as possible. We owe this to our employees. We plan to reduce the number of positions globally from 51,500 to 48,500, taking full advantage of attrition as a factor to reach this goal.”
The company said it has initiated contact with employee representative bodies, and aims to save between €300 and €350 million in personnel costs as a result of the measures.
