Thread regarding SAP layoffs

Layoff announcement in April in Q1 earnings call

The current narrative aound Harmonized Product Operating Model is to make SAP more efficient. However, this narrative is being abused to promote incompetent HR managers who will help fire product owners, designers, agile coaches and other roles to make SAP more "lean" in the future.

These layoffs will be announced in the 2025 Q1 earnings call. Expect about 5% worldwide but a majority will be in Germany as we're moving operations to cheaper countries such as Czech Republic and India. The excuse will be that there is a lot of uncertainty in the US as we are a big supplier there and need to adhere to the new government's expectations e.g. no DEI, trimming the fat, etc. Also it will be shared that most colleagues, after their role changes due to harmonized product operating model do not directly contribute to the L1 goals and new performance management framework.

The appraisals, new performance measurement and lack of MOVE SAPis a build-up towards that. In many areas, there is already a travel and hiring freeze and L2s and L3s have already been asked to look at budget saving alternatives. Product Owners in areas such as Signavio have been given dismal appraisals and are being asked to find other jobs within SAP or outside.

Half of the Works Council leaving didn't really help the matter as they're more toothless to prevent this now.

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| 8912 views | | 10 replies (last March 25, 2025) | Reply
Post ID: @OP+1jp9r07pz

10 replies (most recent on top)

Sword hanging for next 3 days

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Post ID: @1td+1jp9r07pz

They are really getting it done by end of Q1–bravo to the clowns.

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Post ID: @1t5+1jp9r07pz

Thought P24 done at end of Q1 and no additional layoffs for 2025

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Post ID: @1sw+1jp9r07pz

Now confirmed, layoffs starting this week. Disclosure at earnings call.

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Post ID: @1s7+1jp9r07pz

Very few teams are hiring in usa, most of team with open roles have been asked to look for resources in so called "low cost location".

Even indian teams are looking for dev resources in philipines and Vietnam.

It's getting impossible to get any non customer travel budget .

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Post ID: @1bx+1jp9r07pz

Very true @dm+1jp9r07pz they have also actively worked hard to destroy the identity of LOB's that used to do well in SMB and national spaces to add the bloat of hana and btp and hence destroyed their competitiveness in those markets they used to be strong in and handed that to the startups.

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Post ID: @rh+1jp9r07pz

The ERP commercials are way too expensive for small- and mid-sized companies. That's where SAP is losing market share in. This means we are competing in a saturated market of a handful of small but very large companies. You cannot grow sustainably on this business model. Except try and price gouge then. Then expect lawsuits for anti-competitive behaviour.

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Post ID: @dm+1jp9r07pz

Layoffs will continue until the workforce is drastically reduced, and then 50% of the remaining workforce is in low cost countries. The low hanging fruit for RISE has been harvested, it’s too expensive for the mid market, and maintenance revenue is shrinking. The 5 year plan is in the McKinsey playbook - we’ve gone from a growth company (and yes cloud revenue is growing but that’s mostly cannibalisation of maintenance) to a reduce overhead company.

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Post ID: @bk+1jp9r07pz

Is this the wrap-up of long and drawn out P24?

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Post ID: @b5+1jp9r07pz

Signavio was already sc--wed when its whole senior management was replaced with colleagues from Walldorf and St. Leon Rot, a majority of which are notoriously known to be enablers when it comes to mass layoffs. Not surprising.

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Post ID: @a1+1jp9r07pz

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