Thread regarding SAP layoffs

To create a vision for an IT company whose business is all about technology and how to create a sustainable and profitable future, you need recognized industry/technical leaders capable of executing at world class levels.

This we do not have by any means, but we do have a CTO whose claim to this position is that he went to Hasso's institute and befriended him. Ahh, so much for the future vision - but it was a good wish while it lasted!!

Salesforce Cuts More Jobs After 10% Reduction Earlier This Year

Oracle is seeing accelerated growth thanks to its significant investment around generative AI, the technology that can craft images or text from a few words of human input. They are following Microsoft who also invested heavily in this technology. If our "so called" leadership doesn't figure out where we should be focusing and investing in for the next generation of technology, companies like Oracle and Microsoft will soon be eating our lunch.

Be careful what you say about Oracle.
US’s two newest MU GM’s, who were MU COO’s early yesterday, are ex-Oracle.
Also N. America leadership is heavily tilting toward people who cut their teeth in SuccessFactors, which is not exactly the crown jewel of our cloud solutions portfolio…

Oracle definitely su-ks, however their stock performance is up 60%YOY which is a lot more than we can say about SAP -  which is exactly why the comparison between the two companies is such an embarrassment for SAP.     

We need more competent leadership, that simple!!!

Did someone post that Oracle has good leadership? That is joke. Oracle su-ks.

lol oliver

SAP trimmed it's year end forecast on Cloud revenues. It also reported a decrease of 50 basis points on gross margin and an increase in operating expenses of 1%.

The sale of Qualtrics, which was a profitable holding for SAP, was completed in June. SAP SuccessFactors solutions will be integrated with Microsoft 365 Copilot, Copilot in Viva Learning and Microsoft's Azure Open AI Service thereby diluting SAP's profit take on Success Factors. These are big and long term losses.

The Market wasn't happy with these results and so it spoke with its checkbook and said there are much better places to invest in.

I would be concerned about the performance and decisions which were made by SAP to get the Market to adopt this line of thinking.

Think about this - SAP has become a large IT company ( mostly due to a dozen or so huge acquisitions over the last 10 years).

We have 7 people on our executive board and a new Chairmen next year. Not one of these people have any IT/Technical experience which has been used to run a similar organization to SAP, NONE ! That is incredible!! Even our CTO is only in place because Hasso personally installed this individual whose main qualification is that he attended HP institute where he developed a relationship to Hasso.

How does anyone expect to run an organization where the top people have no industry domain experience?? Look to our competitor Oracle where they have a YOY 60% increase in performance because of strong leadership at all levels.

SAP cannot live on the past products reputation, we need people who have a clear vision based on deep experience and understand world class execution - and this we do not have at all. Ultimately we will pay the price for this when we have further layoffs,

SAP Shares Fall After Quarterly Cloud Sales Miss Estimates
The forecast for cloud revenue fell due to “some economic pressure” which pushed some deals into the second half of this year, SAP Chief Executive Officer Christian Klein said in a call with reporters, adding that some public sector clients want on-premise solutions because of geopolitical risk.

This week Germany, Europe's largest economy by far, officially slipped into a recession and things are getting worse by the week. Given the situation with Russian oil, this winter will prove to be a complete disaster in all respects, further dismantling the economic status.

Other Countries are on the verge of also entering into a recession by end of year.

SAP is lowering expectation on performance and the market reacted and we should all expect rounds of layoffs by year end.

SAP is 5th rank in the world for IT companies.

You would think that such a company would be staffed with world class executives who are recognized through out the industry as true leaders capable of bringing a large organization into the future with a clear vision of where it needs to be 5 or 20 years from now.

Well we have 7 members on our Executive Board, the longest serving one is CK having barely just 5 years in position. The rest are here only 2 or 3 years. In other words we have an Executive Board suitable for a start up venture.

Not one of them has ever served on an Executive Board running a Fortune 100 company. Now, who is wondering about our creditability ? For one, the Market is.

Maybe the market wants SAP to stop calling S/4HANA PCE a “Cloud” edition, and associated revenue “Cloud revenue”.

How bout the Market want's some "real" leadership running the company.

I listened to the market call and wondered how the analysts could not be laughing on mute and wondering how in the world did these guys ever get these jobs!

If any shareholder watched the awful in-house video, you'd want to sell your shares too
CK fumbled his way through his portion and DA didnt mince his words either.
As an aside, that Oliver bloke is a horse's ar-e too. Has that smug TV presenter attitude. He's probably got a crazy takehome wage.