Thread regarding SAP layoffs

@OP great prediction. What’s coming next..

@ve Except SAP core never went "cloud", they went commodity hosting but its still at heart a managed onprem solution and thats why its failing. The reason that on prem clients don't see any advantage is there isn't, there are 0 efficencies of scale in any of core SAP's offerings and we still do large deployments rarely rather than freqwuent micro updates that provide continous value. RISE provides none of the advantages of cloud with all of the disadvantages of on prem. it was always cino and as such will take the company down. The worst part of all this is its also taking down all the actually cloud LOB's that have been aquired and then ruined by SAP cores instance that they knew best even though they clearly don't and thats why they needed to by the compitition.

@za I wonder is it worth cashing in on some shares now or holding..

@za it's going to zero within 10 years

Now 192€ ...
How low will it go ?

I think SAP is collecting the result of its recent strategy:

Transition to the CLOUD without the people:

• OnPrem engineers: left behind to do maintenance only until the products end of life

• Try to force customers to go to Cloud by making support of OnPrem a horrible experience for customers : reduced number of engineers, handling areas that are not in their expertise because the experts have left with no KT.

• AI : same story, want to build AI story without the senior engineers and architects and betting everything on new recruits

These choices made two categories angry:

• SAP Engineers: they lost trust in management and lost motivation because they've been told that there will be no promotion, salary increase...and will be replaced one day or the other by AI.

• Customers: forcing OnPrem customers to go to Cloud without clear benefit made them regret investing in SAP in the first place and look for a way out at noon least for Support (Rimini St)

The result is investors, probably heard that customers aren't happy, now start doubting SAP strategy for the future and probably turning their back...

@e9 The lowest in 18 months.

Stock hit the lowest point, what happened?

Let's wait for some more days and months. King Trump has already placed 10% tariffs on some EU countries including Germany which will have an impact on exports and services. And also, if King Trump doesn't get Greenland then from June the tariffs will be raised to 25%. Some to the EU countries have threatened to not sign the trade deal which was agreed in June-July 2025 and if that happens then old US tariffs will again start on top of the new ones announced on 17th Jan.

These tariff wars are a good excuse for companies to layoff more people stating marking volatility and SAP will definitely ride this wave.

It's now below 200€ 😱
The lowest in more than a year...

Absolutely - Q4 likely did not meet revenue expectations so if you thought the stock was in free fall now - just wait. There are no new ideas so expect massive layoffs in the nature of 10- 15k. It will be branded as "efficiencies from AI" and "transformation" and "upskilling - reskilling" which never happens. I witnessed so much unethical behaviour at SAP to last a lifetime. Redundancy used to target employees and redundant roles not eliminated but replaced with manager's buddies. Incompetence rewarded.... even encouraged. I am sorry for the quality, hardworking and ethical employees but glad to watch SAP go down in flames. HR could have been a bullwork and upheld ethical standards, but they just stood by and let it all happen. SAP deserves every consequence of its bad decision making and poor behavior.

@ah SAP wanted a share buyback of €5 billion but could manage only €1,4 billion before they got to a peak. They realize that the grift days are over and the share price will not go any higher now. That is why CK got a bonus of €18 million as cash and not stock options and the executive board is only accepting cash bonuses. If there was value in share buybacks, they would have spent €2.5 billion on that and not on layoffs. Now all they have to offer to the shareholders is an AI-first strategy that will not survive a bubble and a layoffs and cost cutting exercises.

@af The share price in January 2023 was around 107 Euro. Now it is 207 Euro....how did it not work?

@a5 the 2023 share buyback program ended in December 2025 and it did not achieve the intended outcome. So even if there is a discussion about this, it is unlikely that SAP will start another.

@a5 the way I interpreted it, they are dumping the stock but keeping talks open about share buybacks without any intention of doing so. So they know that the stock will plummet further but they want to keep the sentiment high using trash talk about buybacks.

To original poster: stock buybacks increase the share price so why would anybody dump the stock knowing the price will increase? You lost all credibility due to not understanding a simple financial concept.