SAP says it will redesign jobs around AI, not cut them

In short: SAP is trying to use AI to change what employees do at work, with training and role changes, but it is also restructuring and experts disagree about how well this can prevent layoffs.

What's going on

SAP, the German business software company, says it wants AI to automate parts of jobs, not wipe out whole jobs. The idea is that if a tool takes over routine tasks, workers can shift to other tasks that still need people. Think of it like a calculator in an office, it reduces some manual work, but it does not remove the need for accountants.

To support this, SAP is making AI skills a required part of work across the company. It is also giving employees up to 15 percent of their paid work time to learn new skills. In internal surveys, employees estimated that about 42 percent of their current tasks could be handled by AI.

SAP is also putting AI into its own people management. For example, managers use AI tools to help write goals, and SAP is introducing AI “agents” (software helpers that can do specific work steps) to support performance reviews. SAP says it is moving toward a “skills-based” setup, where people are matched to projects based on what they can do, not only their job title.

What to watch

SAP’s message is “reinvent jobs,” but it is also restructuring about 8,000 roles, just over 7 percent of its workforce. The company says its total headcount should stay about the same, with many people moving into new roles or leaving voluntarily. The key question is how many workers can realistically retrain and move fast enough, and what happens to those who cannot.

Source: NYTimes