Thread regarding SAP layoffs

SAP has been "lifting and shfting." So they move tasks down to cheaper markets and actually increase headcount because it's less expensive. And the turnover is high, so competence is low. They've also lengthened and complicated the contracting process, adding layers. One problem is that the "Service Center" mentality is mired in process vs business. As in, process runs the business, and process takes its sweet time. Things that used to take minutes or hours now take days or weeks.

Worked as a sales rep, for SAP, prior to them going public, and afterward; the focus was always growth and profitability.

Much of my career was spent with SAP and Oracle. The latter always “shook up” (layoffs) the ranks on an annual basis, and occasionally more often. Let’s call it fine tuning…..it worked well.

Change does not mean the sky is falling; this is simply business. Put forth effort, work smart and you’ll have no concern for revision. Welcome to the world of software technology.

Start selling, make the money now before the collapse later

As Christian stated when the layoffs were announced last year, they would continue thru 2025.

Everyone should have immediately recognized that his comment that we would continue with these "rolling" wave of layoffs was just a way of compensating for inadequate profits for our stock investors by way of cutting expenses in order to keep the share price moving forward.

Let's be real, CK knows he is on thin ice and any one quarter which doesn't deliver on behalf of the investment community by way of share price increases will not be a positive factor for his continued occupancy of the CEO role and he will take whatever action is necessary and cut whatever expenses he must, to keep his boat afloat.

There’s a reason why CK will do anything to increase the share price:
Most Recent Insider Transactions
DATE
TYPE
SHAREHOLDER
TITLE
TRANSACTION TYPE
SHARE PRICE
SHARES
VALUE
Aug 3, 2023
PURCHASE
Christian Klein
Acquisition
$121.50 PER SHARE
500
$60,750
Jun 1, 2022
PURCHASE
Christian Klein
Acquisition
$92.41 PER SHARE
138,615
$12,809,412
Jul 22, 2021
PURCHASE
Christian Klein
Acquisition
$116.98 PER SHARE
4,500
$526,410
Jul 22, 2021
PURCHASE
Christian Klein
Acquisition
$116.96 PER SHARE
500
$58,480
Jul 22, 2021
PURCHASE
Christian Klein
Acquisition
$116.98 PER SHARE
4,500
$526,410
Jul 22, 2021
PURCHASE
Christian Klein
Acquisition
$116.96 PER SHARE
500
$58,480
Oct 27, 2020
PURCHASE
Christian Klein
Acquisition
$102.18 PER SHARE
1,000
$102,180
Oct 27, 2020
PURCHASE
Christian Klein
Acquisition
$102.18 PER SHARE
1,000
$102,180
Oct 26, 2020
PURCHASE
Christian Klein
Acquisition
$102.28 PER SHARE
1,000
$102,280
Oct 26, 2020
PURCHASE
Christian Klein
Acquisition
$102.28 PER SHARE
1,000
$102,280
Aug 12, 2020
PURCHASE
Christian Klein
Acquisition
$136.30 PER SHARE
100
$13,630
Aug 12, 2020
PURCHASE
Christian Klein
Acquisition
$136.27 PER SHARE
300
$40,881
Aug 12, 2020
PURCHASE
Christian Klein
Acquisition
$136.30 PER SHARE
100
$13,630
Aug 12, 2020
PURCHASE
Christian Klein
Acquisition
$136.27 PER SHARE
300
$40,881
Dec 6, 2019
SALE
Christian Klein
Disposition
$121.66 PER SHARE

• 123

$-14,964
Dec 6, 2019
SALE
Christian Klein
Disposition
$121.66 PER SHARE

• 123

$-14,964
Jul 22, 2019
PURCHASE
Christian Klein
Acquisition
$111.26 PER SHARE
475
$52,849
Jul 22, 2019
PURCHASE
Christian Klein
Acquisition
$111.26 PER SHARE
475
$52,849

: @fg+1jh788zem From what do you talk about that employees can benefit from Share options? Are you mr klein or asam? I have seen no difference in my RSU's, in fact I now get less than what I got 5 years ago. maybe you are working for somebody not SAP.

@fg+1jh788zem

My friend, here is what you miss in your post. It is without question that all public companies have to provide shareholder equity and profits, without this there would be no investors and hence no company.

The shareholder equity comes from the "bottom line" on performance. This "bottom line" can come basically in only two ways. (A) The company market performance and confidence in Company leadership is delivering above average returns OR (B) The company is delivering on the "bottom line" by cutting and cutting and cutting some more of its expenses ( like payroll expenses). So on a quick look since ~ 2018 from when Elliott Group began the carnage and continuing with CK in subsequent years, SAP has shed about 15-20% of its workforce. And so we have increasing stock price because "bottom line" looks good by way of expense reduction not because of stellar performance or industry recognized leadership.

Now I have posted on this site before that Mr Domink Asam ( who posses no experience in SW or technology industry) has yet to report in our quarterly calls what our "Net Profit" is. Why is that?? He informs about Gross Profit and Operating Profit but not Net Profit - interesting ?? Of course Net profit is the most important and shows what is left over after all expenses and operating cost are taken out ( i.e. payroll costs). Net profit is commonly referred to as a company's “bottom line” and is the true indicator of a company's profitability and the holy grail of how competent the Leadership is in running the company. So we must conclude that our CFO leaves out Net Profit because the numbers would no look good, otherwise of course he would be proclaiming how great our Net Profit and bottom line is.

This game of running the bottom line by way of cutting expenses is an age old methodology and ultimately results in such companies running out of things to cut and at some point going out of business or being acquired on a fire sale. Includes the likes of: Eastman Kodak, Compaq, Wang, Netscape....etc. etc....

And we will see if SAP lends it name to this list.

SAP have always been focused on the share price. All publicly traded companies are. This isn't new. Stronger share price can safeguards against being bought out by competitors, it means employees can benefit from share options and discounted share prices or other equity awards.

On the other side, there will be pressure on the board to reduce costs, improve profitability etc... in order to maintain or grow the share price for the shareholders. There is nothing new or unique about this. If you browse around this site you will see similar sentiments about all companies and their CEOs that are publicly traded.

It's something that has to be accepted even if you don't agree with the practice.