“This led us to announce today that we intend to carry out a very targeted restructuring in select areas of the company that will impact up to 3,000 positions and include a headcount reduction of about 2.5%.”

SAP shares were trading over 2% lower at 8:05 a.m. London time following the announcement.

Responding to a question on estimated cost savings from the layoffs, Luka Mucic, CFO of SAP, said the company expects “about 300 to 350 million euros [$327 million-$382 million] in run rate savings.”

“We are guiding [the company] to double-digit profit growth in 2023 as we had always committed, but there will be only a moderate help from the restructuring program to those results,” Mucic told CNBC’s “Squawk Box Europe” in an interview following the announcement.

“What this is really about is a very targeted effort to further streamline our portfolio and concentrate investments on the areas where we clearly can have the most positive impact,” he added.

It comes after the company reported positive fourth-quarter results during the call.

“Our cloud momentum accelerated in the fourth quarter with S/4HANA [SAP’s enterprise resource planning software]. Cloud revenue is also accelerating once again and growing at 90%. We also returned to positive operating profit growth of 2%,” said Klein.

“For the full year, we met our guidance across the board with our cloud revenue rising 24%, up five percentage points from 2021,” he said.

He added that the company achieved this despite exiting from Russia and the ongoing global macroeconomic volatilities.

Last week, Klein suggested that the firm would avoid having to lay off workers, as it is “in a very strong position,” in an interview with CNBC.

He added that he was broadly optimistic about the outlook for technology despite challenges posed by higher interest rates and supply chain disruptions.

“We in the tech sector, we at SAP, we are very confident about the year ahead,” Klein said at the time.