Thread regarding SAP layoffs

Layoff discussion with Betriebsrat

A colleague from the Betriebsrat has indicated that discussions about layoffs are underway, but no decisions have been finalized yet.

Executives are strongly promoting the idea that AI is fully operational and capable of replacing most positions.

Support roles are expected to face significant reductions, primarily through the implementation of Joule AI chatbots that will guide users to FAQs. As a result of these layoffs, support service level agreements (SLAs) are anticipated to change.

Quality Assurance (QA) positions are also likely to be diminished as SAP moves towards "autonomous development testing frameworks." Developers will be required to create tests with assistance from Claude and automate as much of the testing process as possible, leading to further layoffs in QA roles.

There is a hiring freeze in high-cost "class A" countries, with no plans for replacement headcounts. Developer positions are set to be cut in most areas that are not experiencing growth.

Conversely, SAP plans to increase hiring for HR and People Leads, who will coordinate with third-party development consultants to manage the additional workload following developer layoffs. The company intends to partner with AND digital for the majority of its engineering, design, and project management requirements. AND digital has offices in the US, UK, and Netherlands, which will serve as the primary hubs for operations in these regions.

There will be a reduction in employee benefits, including a decrease in SAP loan amounts and Flexibility Mobility allowances, along with stricter regulations regarding company cars. The pension schemes are also supposed to be "consolidated" with lower SAP contributions than before.

SAP aims to raise substantial capital for share buybacks. As a consequence, HR is exploring methods to minimize severance packages. It is likely that the Betriebsrat will not consent to all proposed changes, potentially leading to a deteriorating work culture that may prompt many employees to leave.

Significant discussions are scheduled for July, so we can expect more updates by the end of July or in August. I'm already applying to jobs but haven't been so lucky yet. So many years at SAP and nothing to show for it because I am not so well "connected".

#HiringFreeze #Layoffs
by Anonymous
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Post ID: @OP+1kw5dtenn
Comment! It's anonymous!

12 replies (most recent on top)

@qp Germany (and France to a certain extent) will always be an exception but I don't think it's valid for all teams: AI and Cloud are safe.
The story is certainty different when it comes to OnPrem

by Anonymous
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Post ID: @ss+1kw5dtenn

@qf SAP has job security agreements with WoC in Germany till end of the year and Work Council is in negotiations to increase it by 2 more years which SAP is resisting.

by Anonymous
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Post ID: @qp+1kw5dtenn

@pc I don't think that EU will get its share of Layoffs only next year because it's too long and SAP needs to reassure the market about its AI strategy in order to stop the deterioration of share price.

by Anonymous
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Post ID: @qf+1kw5dtenn

1st email by CK came today, a bunch of emails will come tomorrow regarding reorgs. Whole of SAP LoBs and BTP will be cut to pieces and moved (lift and shift) into BAIP and Autonomous Enterprise units.
After the consolidation, the duplicate roles and overheads will be terminated. Expect layoffs to start first from non EU countries and next year it will move to EU countries.

by Anonymous
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Post ID: @pc+1kw5dtenn

@kk I admire your optimism if you think that there will be an official communication.

I would guess that there will be no big bang but death by a thousand cuts. A few people fired here, some people sacked there…

by Anonymous
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Post ID: @n4+1kw5dtenn

@k7 when are we going to receive the communication email, this week ?

by Anonymous
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Post ID: @kk+1kw5dtenn

15k is the number doing the rounds. Not sure if it would be in one go or spread out and no clarity on country or region distribution.

by Anonymous
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Post ID: @k7+1kw5dtenn

What you actually DO is inconsequential. How you make the higher-ups FEEL; well, that's where careers are made. Layoffs at SAP aren't a bad idea but SAP always lays off the good people and keep the yes men and yes women.

by Anonymous
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Post ID: @e9+1kw5dtenn

@bt always nice to see that one of DA’s recently removed polyps has access to a laptop.

by Anonymous
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Post ID: @dk+1kw5dtenn

@bj The severance at SAP won't be enough given the current cost of living conditions being so ridiculously high worldwide for anyone to retire on even if you've been with the firm for 15+ years. You are witnessing many high paying Director+ roles being eliminated across the industry. So they won't let this go easily. But even retirement pays are being attacked as companies try to hang onto their cash piles and encourage people to leave.

by Anonymous
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Post ID: @da+1kw5dtenn

@bj Those people where the severance or early retirement are not enough to retire will not move on in peace. The job market is rubbish right now, and if you are affected in WDF or ROT, good luck finding a job in the area, let alone one that pays like SAP, if you cannot relocate due to the family situation.

This might become an epic sh-t show. SAP used to be highly regarded in the area because they created lots of well-paid jobs (and because of the donations of the founders to good causes), but this will completely reverse the perception here.

by Anonymous
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Post ID: @bs+1kw5dtenn

@OP "Developer positions are set to be cut in most areas that are not experiencing growth."

That covers ALL OnPrem products.

The irony is that it's SAP's decision to prevent growth in OnPrem so that Cloud can grow faster.

Let's just hope that severance will be OK so that employees impacted by layoffs can move on with peace.

by Anonymous
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Post ID: @bj+1kw5dtenn

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