Based on conversations with the Works Council, here are the top three actions that the executive board is personally invested in to mold SAP the way they want.
- SAP is enhancing the Performance Improvement Plans (PIPs) in Europe. This is tied directly to the new Performance Measurement rolled out in Europe. The underlying premise is to give more power to managers to fire whoever they want to. Just give a bad performance for three times in a row and your reports will be automatically on a PIP and susceptible to getting fired.
- Leanix and Walkme is undergoing a major restructuring in 2026 Q1. They will be moved under Signavio management and there will be new positions created to accommodate for the larger teams. However, only candidates based in Walldorf or nearby areas will be considered for manager and manager of managers positions even if the team is based elsewhere. They already did this at Signavio and we have managers who get to freely travel a lot because they are based at the HQ while 95% of their reports are in Berlin or other areas. Long-term Leanix and Walkme employees will be gently encouraged to leave just as they did with the Signavio management.
- No more layoffs in Germany in 2026. The rhetoric for teeth brushing will intensify at the end of Q1 when the stock price goes below 200€ at XETRA but the Works Council already has an agreement for no more layoffs in 2026. The point they conceded on was the average salary hike which will be 2% and stock options which will have a very low budget and will be focused on employees who undergo role changes (e.g. Signavio people leads who were DEI coaches but are now development managers). In 2026, the public health insurance is going up by almost 5–6% but the salaries will not. On the other hand, the executive board bonuses are planned to be more than 20 million for CK and similarly higher for other members.
It is not easy to lay off employees in Europe so the executive board has a simple strategy. Divide and conquer. Put employees against their managers and vice versa. Discriminate against employees in regions besides Walldorf and nearby areas so they are against employees in those regions and vice versa. Make board areas competitive against one another so they will fight for budget.
Employees are so busy fighting against one another and worrying about their jobs and paying the bills that no one will question the share buybacks and why so much money is given to the executive board as bonuses. And life will go on.
Merry Christmas everyone and a Happy New Year too.