Thread regarding SAP layoffs

SAP talks about AI layoffs and China does the opposite

Chinese Courts Rule Companies Cannot Fire Workers Simply to Replace Them With AI
https://www.caixinglobal.com/2026-04-30/chinese-courts-rule-companies-cannot-fire-workers-simply-to-replace-them-with-ai-102439602.html

I think this is great and would force companies to work on long-term solutions to improve their products instead of short term solutions like layoffs which only increase share price to give the executive board more bonuses.

There was a good economics paper on this phenomenon recently:
https://arxiv.org/abs/2603.20617

The TL;DR of this is: companies are financially incentivized to automate as much as they can and it is very hard to change this. But when one company automates and lays off workers, that affects all other companies (since the workers no longer have wages to buy goods and services). If all companies are automating and laying people off, everyone ultimately makes less money.

They propose as the solution what is basically a tax on layoffs: if you lay people off, and those people don't get re-absorbed into the job market at equivalent or better-paying jobs, then you gotta pay the difference in wages as a tax. The money from that tax goes back to the workers (they propose partially for income replacement and partially for retraining).

From what I see, Germany and other vassal states are just copying the US as usual and trying to fire as many employees as possible to show their "AI efficiency". So I expect that SAP won't change their course unless there is intervention from the EU or the state to save the economy when the AI bubble bursts.


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| 1 view | | 3 replies (last May 2) | Reply
Post ID: @OP+1kqhyjx6e

3 replies (most recent on top)

@br That is wrong. Indians are the best software engineers in the world.

SAP needs to employ more Indians. It also needs at least two Indians on the board.

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Post ID: @d2+1kqhyjx6e

@af China will cope, but India will be eviscerated by AI. Their only export was cheap tech labor. The whole country depends on body shop outsourcing in the first world. There is literally nothing they can do better than AI. It will devastate the middle class in India.

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Post ID: @br+1kqhyjx6e

@OP It's interesting. The AI replacement of engineers trend is very dangerous for a society as a whole and since China is advanced in AI, it has to think and resolve this problem because of the AI replacement starts it's not thousands of engineers who will be out of job but millions and these engineers are the ones who buy cars, houses, goods... They're the fioul of the economy and the stability of the society.

It also poses the question of the future of the education system, what about the schools who produce engineers by thousands every year ?
We're not going to produce jobless people every year...

AI just destabilize the whole system and it's going too fast than the political system

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Post ID: @af+1kqhyjx6e

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