In 2023, SAP will conduct a targeted restructuring program in selected areas of the company. The purpose is to further focus on strategic growth areas by aligning our operating models and go-to-market approach with our accelerated cloud transformation. Furthermore, SAP intends to strengthen its core business and improve overall process efficiency. The program is expected to affect approximately 2.5% of SAP's employees. The vast majority of the €250 million to €300 million restructuring costs associated with the program is expected to be recognized in the first quarter 2023, impacting IFRS operating profit. The program is expected to provide a moderate cost benefit in 2023 and €300 million to €350 million in annual cost savings as of 2024,
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CX and CSS
Qualtrics acquired for 8 billion, now up for sale with a market cap of 7.1 billion. Buy high, sell low. Well done Bill, well done.
3000 jobs is just 2.5%. Don‘t you think this is something that will naturally happen by normal attrition? Even though I don’t believe this is a final number…
Appears to be CX to start with. Obviously everyone in Germany is safe in the first round. Once Dom joins, that is when the bloodbath will start.
SAP Plans to Sell Qualtrics Stake, Cut 3,000 Jobs
I will update this summary analysis with 2022 results. Let’s see CK’s strategic priorities OR whether he takes the short-term easy path…
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 declining (significantly negative if adjusted for inflation and currency).
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.
It’s on. 3,000 announced … for now.
https://finance.yahoo.com/m/df879f74-b477-34b3-b492-b0fef430fca3/sap-to-cut-3-000-jobs-after.html
The results are posted. SAP is barely treading water versus the competition. It will take more than 2.5% in cuts to restore profitability.
No tech company can survive long term spending significantly greater resources on Sales & Marketing than R&D. See summary numbers and pdf from SAP investor pages.
Let’s hope they are de-Klein direct reports.
Anyone know the teams that are affected?