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.