NEW YORK (TheStreet) -- SAP (SAP) - Get Report shares are down 0.96% to $69.31 in early market trading on Friday after the German enterprise application provider announced plans to cut as much as 3% of its global workforce.

The reduction, which will eliminate about 2,250 jobs, is part of the company's transition to a cloud based business model from its current installed applications business model.

"There won't be any impact on customers. We will ensure that we have sufficient hand-over time between colleagues who might be leaving and others taking over," an SAP spokesperson said earlier today adding that despite the job cuts the company would be expanding its workforce in 2015.

The company said that staff deemed redundant would be trained for different positions, while those unable to qualify for their new roles would be asked to leave.

TheStreet Ratings team rates SAP SE as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate SAP SE (SAP) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• You can view the full analysis from the report here: SAP Ratings Report

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