Thread regarding SAP layoffs

This is very true. I worked for the real estate division of SAP for several years and was responsible for the closure of over 30 offices the past 3 years. Many offices were downsized or had a flex implementation put in place reducing dedicated seating. There is not enough space in most US office locations for RTO.

@1lrx+1qRl6gCO Good insights on the facility expansion in India. In short order they will put all this to good use and SAP expands its presence here.

We know from the You Tube video which has been circulated that Renjen is already committed to significant expansion in India and surely he would not go onto a Indian TV platform and advertise his intent.

But don't we find it interesting that in August when this video was done, that Renjen who was only here for 3 months at that point, already knew what the percent of workforce SAP had in India down to a pretty precise number. This should tell us what were the most important facts and figures which attracted Renjen as part of his orientation process to SAP.

I think closing offices is a very, very real possibility. We now have a new CFO and a Chairman who comes from an accounting company, who I am sure are already scrutinizing our fixed and variable costs.

As said, closing offices not only eliminates the recurring facility costs ( rent, tax, lunch program, etc...) but it also enables in one substantial move to cut hundreds, if not more, and shift these to a new location.

I cannot see how this new leadership team will see value in having so many offices in high cost locations

SAP is building another very big office campus in Bangalore, India. This will be their second campus in the city which can easily accommodate 15K people.

https://www.worldconstructionnetwork.com/news/sap-labs-second-campus/?cf-view
https://timesofindia.indiatimes.com/gadgets-news/sap-labs-starts-construction-of-second-bangalore-campus-to-create-15000-jobs/articleshow/100596978.cms

I could easily see some of our offices globally being shuttered and either consolidated to another location or offshored to India.  In either case, it will allow for a "new" workforce to be hired, which we all know would not only be based in a low cost location, but also the positions will be entirely T1 and T2.    This is an ideal situation for our new leadership team to have available to them. 
Because of the Works Council,  all locations in Germany ( and maybe France) are  fully safe

I know NA pretty well and I would say the  larger locations are all in the most expensive cities; Vancouver, New York, San Francisco, Silicon Valley,  Newtown Square, Boston. Miami. The other locations do not have sufficient HC to warrant keeping them open. Sure it might cost some money to cut our leases but to a company whose "most recent" fine was $220 Million and didn't flinch  at all about it, then doing a sub lease or even paying the cancellation fee is peanuts compared to what they will save in the longer run

That's a pretty good observation.  The days of high living in all of our well appointed offices like in NA can be over pretty quick. 

 First, the commercial real estate market  around the globe is on life support.  They will just about give you free office space in an office bldg, just to get a tenant in there.

Second,  locations like Newtown Square can easily be sold off and operations moved to a high rise in  Center City Philadelphia, Vancouver and Bellvue locations can (and should be) consolidated into one inexpensive location in Seattle.  Palo Alto, San Francisco  and San Ramon can all  be consolidated into one office most likely off the peninsula.

Third, Closing down an office presents an even more efficient way to offload HC, because you can clear out an entire location in one shot without having to pinpoint individual layoffs. It will also help with the RTO mandate, because new people would be brought in without any previous knowledge of what it was like to WFH or the pledge SAP made to us and these new ones will be required to be in the office 3 (or more ) days a week.

In former times,  such an idea wouldn't even be dreamed of - the company was making good money and image was important to SAP and the people running it like Bill Mc.  But those high flying days are over and the cloud will never spin off the profits  On Prem & Maintenance Revenue provided.    Once our leadership  gets past this first wave of layoffs and is preparing  for the next wave, if they have not already thought of this  office closure/consolidation .then one of the consultants helping them with cost efficiencies will suggest it.

If you are in an office with  <250 people, consider yourself a high target for office closure. These will show up pretty quickly on the Balance Sheet and lacking justification to keep them, will result most likely in shutting them down.

Never would have thought this was possible but  after two significant layoffs in back to back years, now I would definitely consider it.  We better  all face the facts,  SAP is changing  very quickly.

German colleagues were always more eager to travel to PA than NSQ, despite the longer flight and ugly AF campus (I don't disagree).

NSQ's days are likely numbered.

Get a transfer to Malibu and buy a surf board baby!
Building a brand new office in San Francisco - CK’s “unplugged” focus on sustainabilty should be asking if city workers there will be collecting the garbage beyond this year.

You consider the Palo Alto campus as built to impress? Really? Well, I think it is ugly as fu-k.
For Germany, we have 16 offices but most of them are very small. Relevant offices are in Walldorf, Berlin, Munich and Dresden. These are real offices with developers and they are unlikely to get closed anytime soon - in fact, they are heavily being invested in.
The other offices are basically just meeting rooms with a printer for all the consultants and sales people. They might get closed over time. SAP has done that before, multiple small offices in Germany were closed and employees were given the option to either relocate to beautiful Walldorf (I’d rather shoot myself) or leave the company,

The companies expenditure will have to mirror it revenue . Offices were a place to engage with customers either from
A sales perspective or a training one. Unlikely that model will continue in a virtual era.