Thread regarding SAP layoffs

Facts are well stated but those are symptoms not root causes.

As a tech company if we work on real customer problems and create innovative solutions, the profit will follow naturally. But rather, we focus on squeezing the customers, and on competition.

UI5, Fiori, Hana, CDS views ...we keep making half baked "innovations" when there are clearly better open source alternatives, and force it on to our developers and customers. All damages are self inflicted.

thinking that the Company success story is built on Revenue numbers, is hallmark of our Sales Organization ( which I deal with on daily basis) - it's fools gold. They would be happy to give the stuff away for free if it makes their quota targets.

The name of the game is 100% Profitability, not Revenue and here SAP has much work to do to reduce expenses to increase Profits.

Some good examples ( but bad models) of why Profit matters and Revenue doesn't are companies like AIRBNB, Dropbox, LYFT... all of these companies had great revenue/funding but pathetically poor profits - companies like this whose expenses undermine profits are on life support and one step away from going under.

Don't be mislead on what sounds great, like how large our revenues are but think like an investor and where are the profits.

Revenue is not what the investment community is looking for - They want to see Profit,
which SAP did not fare well and fell below YOY performance on Profit

Operating Profit has been a perpetual problem for the company to properly address and still it has not been figured out.

This below expectations on Profitability is why the stock is down today. Confusing Revenue vs. Profit will surely take us down a terrible road we don't want to travel.

And what is this?

Adjusted earnings per share were 28 cents, below estimates of 44 cents, mainly due to a lower contribution from investments in venture capital firm Sapphire Ventures.
The contribution from Sapphire Ventures was down by about 1 billion euros from last year.

“updates operating profit outlook range” is the important part