The recession-hit weak demand has forced software giant SAP AG to reduce its staff by 6.7 percent this year - the company that had 52,000 employees in September, will be left with 48, 5000 employees after the layoffs.

The Walldorf, Germany-based manufacturer of business-management software, the biggest in the world, anticipates its 2010 onwards yearly savings of 300-350 million euros, as a result of the job-cuts. Till then, the cuts call for restructuring charges to the tune of 200-300 million euros.

Moreover, the company said that the announced staff reductions would weigh on its operating margin this year by 2-3 percentage points. Hence, the forecast operating margin for 2009 is between 24.5 percent and 25.5 percent, as against the year-earlier 28.2 percent last year.

SAP's target of core software and software-related sales has not been revealed, as the company refused to give a definite guidance for 2009. It has, nonetheless, roughly estimated its sales to be either flat or 1 percent below the 8.62 billion euros sales in 2008.

In a Wednesday statement, Leo Apotheker, SAP's Co-Chief Executive, said: "We expect 2009 to be a year of limited visibility, making it increasingly difficult to project sales in this environment."

All said and done, Apotheker also told Bloomberg television that despite the economic downturn worldwide, there was still demand for software and, as such, forced layoffs will be avoided by the company as far as possible.