Losing competitive advantage

There will be no VERP for ppl who joined in 2022-2023. Lay off on horizon, Oracle replaced SAP in both revenue and new customers in ERP to be Nr.1. They have wide range of solution from Strong ERP solution portfolio, Public Hyperscaler services to Databases..

SAP revenue vs Profit Margin decreased.
No. Of employee: Hiring spree in 2021-2020 with 15% and 20% workforce on non-revenue generating or enabling position.
Customer are jumping off SAP then continuing SAP rise.

In this way, SAP have to layoff around 12K ppl around the globe and atleast 6K would come from Germany without any severance pay as in 2021, they hired alone 10K.
BTW: SAP give only 6 months salary if you have completed probation and they release you immediately, else nothing.

I pulled this from the thread below ( +1jUYPPlu ). This post raised my anxiety levels a lot. Looks like 2023 will be very turbulent here?

Comment! It's anonymous!

7 replies (most recent on top)

Personally a VERP would be a win-win in my case, here’s hoping!

@aubp+1kxL2OGU

What numbers are those, exactly? Year-end results won't be announced until January 26th.

Probably none of the leadership have read the numbers. Still busy with the self congratulatory and self-given awards at FKOM.

Maybe CK and his board of nepotists will take a big pay like Tim Cook at Apple ROTFLMAO

Check SAP investor relations ... 2003 versus 2021 annual reports. Overall FTE growth during ~20 years

Overall group 273% (39,355 to 107,415)
R&D 273%
Sales 398%
Services & Support 116%
Admin 192%

The admin function as % of revenue has also increased from 5% to 8.7% while overall margin contribution over the past 20 years continues to trend lower.

Over 21,000 Sales and Marketing staff have been added with revenue per sales employee flat (negative if adjusted for inflation).

The real question is will Services and Support get kicked again OR will SAP leadership go after the Sales and Marketing function which has grown 50% faster than the rest of the company and whose unit contribution is declining.

Speaking more “senseless drivel posted by fear-mongering strangers”, a friend of mine in NA Industry Leadership just got clipped. Expect the worst unless:
• you have a RISE title/role
• nobody knows what you really do or are supposed to do (in terms of customer outcomes)
• you yourself may still not know what you are supposed to do to drive customers’ outcomes
• McKinsey or Bain consultants probably concocted or contrived your new job description

@OP+1kxL2OGU
It's meant to raise your anxiety levels. People who post this sort of thing have an ulterior motive. No sense in worrying about something you can't control. Be prepared for a rainy day, regardless of the economy or the senseless drivel posted by fear-mongering strangers. Life is too short and the internet is a clown parade. Good luck... and stay positive.

Thread regarding SAP layoffs

Losing competitive advantage

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