Layoffs are a distraction to allow the executive board to maximize their own bonuses. And their actions are vindictive towards employees.
The share price is plummeting and is likely to drop below $200 soon. SAP's AI initiative Joule is receiving poor feedback from customers and has less than 5% active adoption rate within SAP. Recent acquisitions like Signavio, Leanix and Walkme seem more focused on pushing their DEI agendas than an actual integration. Development managers are being replaced by hr personnel in HPOM. There is a disconnect in projected profiles due to high order volumes but extremely low adoption rates and upsell. Competitors are justifiably taking legal action over clear instances of copying and infringement. Meanwhile the budget for annual salary appraisals is slashed to an all-time low and there are rumors that bonuses will be capped at 50% next year. The new performance management is giving more power to bad managers and only employees who have a good relationship with their managers can now expect a decent bonus. Free cash flow is funneled into share buybacks, dividends and hefty bonuses for the executive board. Less cash means that employee benefits will lower even further in 2026.
In any other organization, such a situation would trigger a complete board overhaul and the establishment of a solid long-term strategy aimed at stabilizing stock prices and fostering growth over the next five years.
But not at SAP. The executive board seems more inclined to discuss further layoffs and say derogatory and controversial statements in every interaction. Despite all this, they will get the highest bonuses ever.
There are simply NO CONSEQUENCES for their actions. It's disheartening to witness a dysfunctional executive board that prioritizes its own interests over the company's well-being and employee trust.