The German contribution to the company restructuring has been reported to be on target. After the May 08 registration deadline 1870 employees have registered. Around 1200 are expected to finally leave under one of the programs. Source: https://www.crn.de/software-services/artikel-119900.html (sorry, in German)
For those of you scared about additional layoffs this should be good news as it takes of pressure from all other countries and locations.
Elliott usually needs below 3% of stocks in order to make management do what they deem positive for the stock price.
Read this: https://diginomica.com/elliott-management-and-sap-background-and-elliott-playbook
Btw McDermott is already performing according to Elliotts demands: https://www.reuters.com/article/us-sap-conference/sap-ceo-welcomes-fantastic-activist-shareholder-elliott-idUSKCN1SD1Y4
With only owning less than 1% of the stock, why should Elliot be able to expect anything at all?
Elliott has set expectations for McDermott to raise Earnings-per-Share from roughly €4 to €8 until 2023.
Thats a dramatic improvement that imho can only be achieved through a combination of (1) substantial share buyback (2) spin-off and sale of unprofitable units (3) huge efficiency gains in all major lines of business. That does not necessarily mean layoffs but I bet that holding SAP shares is more fun in the foreseeable future than being part of the transformation that will necessarily have to follow.
The turnover rate in Germany has been 1% for the past 10 years. 1200 out of 25000 is a good start but Eliot will expect more.