Thread regarding SAP layoffs

Boy was I fooled, for a minute I was beleiving all the SAP hype about how we act as one team, But it's really just about winners and losers

How inspiring it is to walk the hallways of my SAP building and read the placards placed  all around. . Here's a sample of some of them ,  "All for one and one for all",   and  " We are  the SAP Team" and this was one of the best,  "The way to achieve your own success is to help somebody else achieve theirs."   

In 3-4 weeks SAP will begin notifying an alleged 3000 employees that their time with SAP is done and they will exit the company immediately on notification - that's how quick it will  come to an end .   It will be a sad day to see people who you worked with closely  and who worked  very hard for the Company get cut.   

But cheer up my fellow SAP colleagues,  because   just  a  week  after these 3000 people are told they are no longer needed, we will be sending some 5000 Sales people along with their significant others to Winner's Circle - isn't that fantastic !!    Yes they will still go on their company spree, no matter what.   This is an event that will send a total of  more than 10,000 SAP'ers  on an all expense paid week long vacation along with expensive gifts and world class entertainment.    Imagine that,  who in their right mind, especially given that we haven't made a profit for years and also  under the economic  circumstances  of the past couple years, would even dream of justifying an event like this ?   Well SAP does, and  It's the best  corporate show around - Bill really set the bar pretty high for this one!

Just so we are clear,  this is the same group of Sales people who figured out that you just  need to meet the revenue goal to get to Winner's Circle but you don't actually need to sell at a profit.  This is a key reason why we have consistently failed year after year to post a profit and in 2022 we had once again a significant profit loss, but no worries 10,000 people will still descend  on Winner's Circle.   Now if they had the metrics based on "profitable' deals, we would just have needed a table reservation for 4, but that's not how the SAP  sales org works.

The fact that SAP is proceeding to move forward with this extravagant event while at the same time  laying off thousands  of dedicated employees is the height of insolence, selfishness  and insincerity.   You can do the math but the budget for this event is over $50MM - so how many jobs would that have saved?   Plenty for sure.    These layoffs didn't just get drummed up last week.  The Board knew mid year that they were headed into another year end close that would  have significant profit losses leading to layoffs and they had the opportunity to cancel out this event in an attempt to save many of our colleagues from this  impending personal nightmare and show that the company really values "each" of it's 100,000 employees - of course this is  assuming they really cared about all of the employees.  But this was not to be - not in a million years.   We could not be further away from functioning as one company.     ( And yes if questioned they have already cleverly  established the party line, which is It was just  too late to cancel so we had to go ahead - and  if anyone believes that I  have a couple of bridges for sale in case anybody is in need.)

But OK enough about the  fake k-m·ba·ya.  Let's wish our  prima donna colleagues all the best at their free spending lavish event and let the rest of us wonder around the SAP hallways and read some more placards about how much we care about each other and work as a team... yeah... let's tell it like it is and please send a note over to your favorite sales person or SVP  and ask if they  can at least raise a glass of Chateau D’Yquem on  behalf of those who were laid off while  they wine and dine themselves and their partners next month!!     BTW.  If any of the attendees need a recommendation, I hear the scuba diving excursion is to die for.

Ahh,  how sweet are the fruits of success,   even when they come at other peoples expense!  Enjoy  and a big thanks to  Hasso and CK  and the whole SAP Board for continuing to  make  ALL of this happen , you guys are the best!  

Now  can I please get back to reading some more SAP propaganda about how we can build bridges and not silos  to one another - what an absolute and complete  selfish  farce this company has become  that is built on nothing but greed and a employee caste system.

It's really just as simple as it's all about Winners and Losers and nothing more. We should all be looking for better opportunities elsewhere.

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| 4050 views | | 6 replies (last February 15, 2023) | Reply
Post ID: @OP+1kWNWOGl

6 replies (most recent on top)

Welcome to capitalism!

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Post ID: @gyvf+1kWNWOGl

Thanks for bringing transparency to this ostentatious event.  To be sure,  this event is exclusively for the sales organization vs a cross board area one ( not that that would make it any more palatable) and as it is pointed out, it flaunts one group of employees over all of the others as if they were somehow special, or  the reason for SAP successes - which is not quite the case at all. 

Actually, it is all about operating margin, profit and the sales organization.  Our margin is measured by how much money is left over from each dollar of revenue after our expenses are paid, thus leaving SAP with some  profit.  Higher the margin the better the profit.

And so the Sales org fits into this equation both ways.  On the expense side, they have exponentially more headcount than any of the other board areas and in fact more than some of them combined !   It is absolutely ridiculous how many sales people we have and all of them well into the six figures.    On the revenue side they also fit in since they will "off sell" from the SAP product list  taking discounts just to get a sale and  get recognized for some revenue even if it is without profit.  Our Board also likes this because during the quarterly analyst calls they can boast about increased revenue and sweep under the rug any mention of declining profits.

It is wrong on so many levels to go ahead with this event, which will  only further alienate the company from the "haves vs "have nots" or as the author puts out, winners from the losers, clearly defining for all 100,000 employees "who " are considered to be the most valuable and important people in the eyes of our Board and Leadership, when in fact we have the most underperforming group  within the Sales Org.  Indeed " this is the house"  which Bill built and it is flawed

The event should have been cancelled years ago for these reasons and if it were to ever be brought back, the 50MM Budget should be equally shared among all Board areas and each can send the most deserving contributors - THIS IS HOW WE DRIVE EXCELLENCE and not by cultivating a caste system!     But we will have to wait for a much more engaged and authentic Board for such a crazy idea to even be considered.  Such a shame for all those who will be laid off while this travesty goes forward.

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Post ID: @2azq+1kWNWOGl

Excellent post and right on target. I work with the sales group ( but not part of it). Consists of a lot of unproven individuals, many of which are only a year or so from college. The level of entitlement is overwhelming.

Very , very few really know our product portfolio and just fake their was into customers and hope the presales teams can bail them out. Many are selling with a g-n to their head so it should be no wonder why the quality of the deals from a profit perspective is poor.

The sales org has an extremely high turn over rate, they are here today and gone tommorow. As a result there is a total lack of comaraderie throughout the entire company - you hit the nail right on the head.

Yes there is absolutely no question that such an unnecessary and totally extravagant event should have been cancelled and the budget used to retain our people and if any of our leadership had an ounce of intelligence we could have reallocated people into more valuable positions vs sending decades of experience out the door.

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Post ID: @1qhh+1kWNWOGl

https://twitter.com/TheLayoff/status/1620137435702382592

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Post ID: @cbh+1kWNWOGl

So in terms of profitability, SAP could definitely be doing better on the margin, but the top heavy middle management and people pushed aside to "special projects" don't help. Several years ago I saw a deal where the absolute lowest we could go on a HEC deal was 40% higher than a third party (of course, the customer chose third party - they expressed a willingness to pay up to a 20% premium, but we couldn't make the numbers meet).

Another stark article I saw a few years back was comparing AWS storage rates in a Frankfurt DC to SAPs - SAP was 3x the cost.

Beyond the actual running of cloud hardware (which a lot of more recent moves are going towards and getting on hyperscalers) our process heavy.

In terms of the Winners Circle event, it is a lavish event that, IMO, I think should be scaled back. But event spaces are not booked like a hotel, and events like that take planning. Often, a year or more of planning. And event spaces can't replace this overnight. In turn, there are often huge financial commitments to take event space, and major financial penalties for not actually conducting the event. (This was a listed reason in the Q&A on the all hands as to why CSKOM was still held in Vegas even though the org is mentioned as being impacted by restructuring).

Bill McDermott forever changed the direction of the company when he gave the ultimatum that he didn't want to be a Co-CEO and either he was taking the helm or he was leaving. The board relented and SAP has become even more sales focused since.

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Post ID: @yvq+1kWNWOGl

Well said. Operational margin is a delivery problem, not a sales problem.
I wasted over 10 years trying to turn chicken $h1+ (bad services sales deals prostituting software licenses) into chicken salad (gross margin)…

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Post ID: @mvx+1kWNWOGl

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