SAP Cuts Spending as Profit Forecast Falls Short

Tuesday Aug 7th 2012 by Staff

The enterprise software vendor says income is on track to reach 95 percent of the company's annual goal.

eWeek: In an interview with German news magazine WirtschaftsWoche SAP CFO Werner Brandt confirmed that the company's income so far this year has not met expectations. In the first six months of 2012, the enterprise software vendor earned $2.35 billion, putting it on track to make $6.23 billion to $6.48 billion for the year. That falls short of its $6.56 billion goal for income.

As a result, SAP plans to trim expenses. "We have to cut costs considerably in the second half to reach our internal target," Brandt said. While the company is not planning layoffs or a hiring freeze, it does plan to replace some travel with videoconferencing.

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