This really makes me sad, but there is no denying it. When the management decides layoffs are the only way to fix what's wrong with the company it becomes obvious they've given up and are only looking to pad their own pockets going forward.
For the rest of us, it's best to start looking for ways out ASAP. Things will only get worse for non-management employees in the future...
IBM started saving costs, and started hiring people of certain nationalities, who hire their own kind once they are managers. They corrupted IBM the same way they corrupted their own country. The same is being played out in SAP.
If you want quality, be prepared to pay for quality people. Taking the short cut to short term profitability will just destroy the company. As it is, the company is still continuing in their delusion.
SAP is losing it's way, look at IBM and their 25 or so quarters of decline. SAP is doing the same thing IBM did.