Employment Law

SAP layoffs: 8,000 jobs cut as part of AI push, restructuring

A photo of a circuit board creating the shape of a human brain. (Photo: Steve Johnson / Unsplash)

SAP plans to execute a company-wide restructuring this year — affecting approximately 8,000 jobs.

What’s happening at SAP?

In a recent news release, the software firm said it intends to “transform its operational setup to capture organizational synergies, AI-driven efficiencies, and to prepare the company for highly scalable future revenue growth.”

Around US$2.2 billion will be used to retrain employees with AI skills, or replace staff through “voluntary leave programs.”

While SAP didn’t speculate on how many workers could be let go, the company expects to “exit 2024 at a headcount similar to current levels.”

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SAP layoffs in Canada

It remains unclear if any Canadian employees will be laid off as part of SAP’s “transformation program.”

According to the company’s LinkedIn page, it has more than 3,300 workers in the country.

Should I accept a voluntary severance package?

Non-unionized employees at SAP Canada shouldn’t accept a voluntary severance package before speaking with an experienced employment lawyer at Samfiru Tumarkin LLP.

In some cases, individuals could be owed far more compensation if they are fired by the company, or let go involuntarily.

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Termination agreements for SAP Canada employees

In Canada, non-unionized employees at SAP are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Before you accept any severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what the Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

Severance for provincially regulated employees
Rights to severance for tech sector staff
Rights to severance during mass layoffs

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Major tech layoffs continue

The restructuring at SAP comes amid a flurry of tech sector layoffs in 2024.

Big names, including Microsoft, eBay, Brex, Wayfair, Amazon, YouTube, Google, Instagram, Discord, Twitch, Unity, and Xerox, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

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Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

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