FRANKFURT -- Software maker SAP (SAP) - Get Report saw net profit in 2008 decline, hampered especially in the second half of the year by the world's financial crisis, and said it will continue its cost saving measures by cutting its work force by about 3,000 to 3,500 jobs.
SAP said Wednesday the job cuts will provide annual cost savings beginning in 2010 of 300 million euros to 350 million euros.
SAP said net profit fell to 1.89 billion euros ($2.49 billion) from 1.92 billion euros a year earlier. Total revenue increased 13% for the year to 11.6 billion euros from 10.2 billion euros in 2007.
SAP, the world's largest producer of business-software applications, said it wouldn't provide an outlook for the current year because of the uncertainty surrounding the economic and business environment.
"We believe the cost containment measures will allow us to adapt to the tough market conditions and ensure the long term competitiveness of the company," said Leo Apotheker, the company's co-CEO. "Moreover, we expect 2009 to be a year of limited visibility, making it increasingly difficult to project sales in this environment."
SAP co-CEO Henning Kagermann said 2008 can be described as a year "having two completely opposite halves, where a strong first-half performance was greatly disrupted late in the third quarter by the beginning of the worst economic and financial crisis the world has witnessed in decades."
Kagermann said the company posted full-year double-digit growth in software and software-related service revenue and gained share against "core applications vendors."
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