Thread regarding SAP layoffs

SAP leadership at Davis should have been focused on customer requirements and less virtue signaling.

SAP very likely has the highest carbon footprint of major software providers given:

highly fragmented portfolio,
high number of data centers, and inefficient change and release management capabilities that require 5+ system landscape.

S/4 always has increased HW requirements to run HANA, FIORI, … versus anyDB on ECC.

If you include customer infrastructure carbon footprint - it may be a very large contributor to global warming - the most written about topic by SAP leadership. Perhaps they should address root cause and fewer selfie virtue signaling posts.

Don't be swayed by political propaganda that inflation is under control and should be behind us this year.   Tech industry experts are forecasting ANOTHER 15-20% employee reduction later this year.     This is on top of the 10-20% many of our competitors have already implemented,  meaning that some of these companies will have an overall reduction of 25-35% layoff ( or more).  That's incredible.

If we don't take care of our problems we might get another Elliott Group back in here shredding the place.  Check out what Elliott is now doing to Salesforce - they now have to deal with these vagabonds.

Is it really possible that SAP will cruise thru all of this  turmoil without having any layoffs ???

When will our management team address our concerns head on and speak to us to  let us know what to expect ( or maybe they are all still at the SAP house in Davos....)

https://fortune.com/2023/01/23/big-tech-layoffs-15-20-percent-next-six-months-top-analyst-says/

Many of the people in my location have been pretty anxious as to what SAP plans to do, if anything, regarding any possible adjustments on headcount especially given that many of our competitors are now having significant layoffs. Nothing at all is being said internally to allay employee concerns making the concerns even higher.

When looking at the early market indicators on Q4 performance it looks that SAP will report significant revenue increases in Cloud business, which is great news! But none of these early reports have anything to say about whether our profits are positive or at least have increased from previous quarters where they were negative ?

All of this is making us concerned as to what the new CFO's plans are, especially since there was never any clear reason as to why Luka was let go in the first place. We all have assumed that given his role as Corporate CFO Luka took the blame for poor performance on margin and profits. On a personal side I am afraid to make any long term expenditures without knowing what the company plans to do and how it could impact me and that is just adding to everybody's frustration levels.

The new CFO is scheduled to start in March so I guess we will have to wait until sometime after that to see what the company plans are, especially if our numbers are lacking once again around profitability, which means that most likely we won't really know anything until May or June, but the suspense is a tough road to travel.

To the post of: @OP+1kQHFsxL

Funny that you post the entire article from Zacks and completely avoid addressing any of the obvious failures in SAP Q4 performance, or more importantly what such gaps might mean as the company goes into 2023.

These were not minor misses and should be looked at from the lens of what steps must be taken to correct these factors immediately so they do not persist and influence this years performance.

And you speak of my attention span?? Really? How about I send over some glasses for you to use the next time you have a look at market analysis, they are rose colored ones and should fit you pretty good.... no, maybe better is the blindfold for you.

Christian, was this really you....?

I I have been with SAP for more than 20 years and it has been a great company to work for during all those years. For many of those years we were king of the road and had little to no competition selling huge ERP platforms, but things have changed and now that we have embarked into the cloud space we have competition coming from large companies to mom and pop outfits. The perpetual inability to have positive numbers on operating profit and margin will not serve us well in our new market space.

You don't have to be rocket scientist to know that you cannot run a business without profit. Putting aside all of the Zacks and Marketplace summaries ( which btw exists for one reason which is to sell stocks), the only metric which really stood out to me was the 35% drop in EPS. We all know EPS is represents the portion of profit allocated to each share of stock. Simply put, EPS dropped significantly because we remain without making a profit to distribute.

Why don't we all wait for the numbers this week and we can see exactly what our Operating Margin and Profit actually were ( forget about revenue as this means nothing if we don't turn a profit.

If we are negative once again then I think it's a fair expectation that SAP will join the ranks of the other tech companies and implement a RIF.

Yes, let the new CFO start swinging the axe and chop off all the dead weight so SAP can go to the MOON!!!!

@OP+1kQHFsxL
Did you read the entire article? I mean, I know that reading more than the first paragraph or two probably challenges your weaker than weak attention span (or, perhaps, doesn't help support your ulterior motive to scare and de-motivate people...)

But, anyway...

"Factors to Note
The company’s performance in the fourth quarter is likely to have benefited from continued strength in its cloud business (especially the Rise with SAP solution) across all regions. In the last-reported quarter, the Current cloud backlog — a key indicator of go-to-market success in cloud business — increased 38%.

The RISE with SAP solution will likely help SAP increase its market share in the cloud ERP solutions’ space and boost the adoption of its cloud-based solutions, such as SAP S/4HANA. In the last-reported quarter, the Rise with SAP solution was adopted by clients, including Alpargatas, Dabur India Limited, Fonterra, Nikon Corporation, Prada, RICOH CO, Roborock, Salzburg AG, Schneider Electric, Wistron Corporation and 11teamsports.

The company is also likely to benefit from the growing momentum in the SAP Business Technology Platform and SAP Ariba and SAP Signavio solutions.

Apart from that, frequent product launches are likely to boost the top line. In November, the company announced the launch of SAP Build, which leverages the company’s Business Technology Platform to assist customers in easily creating and developing enterprise applications and automating processes etc.

However, global macroeconomic weakness, geopolitical instability and continued softness in software licenses are major headwinds for SAP. Stiff competition in the cloud space and increasing research & development and sales & marketing expenses are added concerns.

What Our Model Says
Our proven model predicts an earnings beat for SAP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

SAP has an Earnings ESP of +3.09% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter."

25 Jan 2023- In US premarket trading - Shares in major European software firms such as SAP SE and Sage Group Plc. feeling the heat from Microsoft and Dutch chip-tool maker ASML Holding NV falling after posting a profit miss. 

Couldn't agree more with original post. Let's see if we made any significant improvement in q4 on operating profit and operating margin. If not then for sure I see the new CFO swinging a big ax on headcount- it's why he was brought in to get some profitability in the company. It's what CFO normally do.

The cloud space is far too competitive and has extremely low margins. For us to be successful in this area, we must reduce expenses to get profit up. We remain scaled up for our former times of being a behemoth ERP company. This won't cut it for a cloud enterprise - but unfortunately too many folks are protected by works council. Luka couldn't figure how or where to get the needed reductions, so we will see if Mr. Asam can.

It really is oke

https://www.macrotrends.net/stocks/stock-comparison?s=net-profit-margin&axis=single&comp=SAP:ORCL:CRM

https://www.macrotrends.net/stocks/stock-comparison?s=operating-margin&axis=single&comp=SAP:ORCL:CRM

It's oke... https://www.macrotrends.net/stocks/charts/SAP/sap-se/financial-statements

Bravo! I saw the exact same thing.
Any mention of Sapphire Ventures, the private equity play toy for Hasso’s kids that pulled our overall EPS down last quarter?….