Info went up for investors, around 8k positions affected by the restructuring https://www.sap.com/investors/en/financial-news/ad-hoc-news/2024/01/2690989.html
13 replies (most recent on top)
It is not a quote, it is also not misinformation. I wrote that. SAP does this move to be more profitable, we need to get rid of people, period. If you are at T5 level, then just think about how costly you are compared to a T2 person. That's that logic. Now take 2bn (see the FAQ) and divide it by 8000 and you reach 250k cost rate. It just does not make sense to throw out lower levels much.
@1bjn+1qIFLSKv Nowhere. Its not a quote... so here we are again... misinformation.
@1aea+1qIFLSKv maybe the layoffs will be via AI HR bots. 😂
Where are people seeing the quote of “8k layoffs of T4s and T5s primarily”
Yay, HR get to be re-trained as AI professionals! /s
“8k layoffs of T4s and T5s primarily” << sad truth. Don’t become too good at what you do. T1 and T2 new grad influx on the way!
On breakdown of the 8K into reskilling, VERP, forced layoff, and other buckets, “reskilling” can mean overlay sales roles (like BTP AE) are eliminated in the same way this always happens after a product is established enough to hand sales entirely to IAEs. In the past couple of years, many former individuals in sales overlay positions have become ECSPs. Perhaps there will be more of that, but this isn’t enough to reach the stated two-thirds threshold.
8k layoffs of T4s and T5s primarily, guys, they want to save 2bn.
My thought on the €2B restructuring cost was VERP, also. This said, and I’d love for someone to explain this to me like I am five years old, what is the short term advantage of a RIF if the objective is to be at the same HC by end of year?
Wondering how much of the 8k can be covered by reskilling and voluntary programs. Anyone remember from last year's 3k affected position the breakdown of actual layoffs vs. reskilling etc?
Thx for finding this, but I don't read that It speaks directly about 8K layoffs. However it is very confusing and I am sure designed to be this way.
I read it that the majority of the approximately 8,000 affected restructuring positions is expected to be covered by voluntary leave programs and internal re-skilling measures. Reflecting re-investments into strategic growth areas, SAP expects to exit 2024 at a headcount similar to current levels (OK so means we keep the same HC???)
I assume the departures will be some type of voluntary departures like early retirement packages.
I would be much more concerned about the statement on the 2025 Ambition which states that it includes a reduction by approximately €2 billion due to the inclusion of share-based compensation expenses, Without much more explanation not sure what this means But at an average salary of $150K to get to 2 Billion would mean the loss of about 13.300 positions or about 12 percent of our workforce. Don't see this many taking VERP.
Leave it to SAP to develop as confusing a message as could possibly be written.
But anyway good find and maybe we get some more detail tommorrow.
Hey, good thing there weren’t any $220M bribery scandals to pay out on …
Don't worry, they still did winners circle this year