I’ll just leave this here https://www.ft.com/content/fae1f119-2d45-4285-8b9d-0f119937578f
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McDoorman mess is finally cleared. What a waste of time for that id--t. Thousands were laid off in 2019, due to this blind man
To those who say SAP failed in its acquisition of XM:
SAP spent $8B to buy XM in 2019
Thru XM's 2021 IPO:
SAP received $1.8B dividend + another $500M payable; retained ~3/4 control of XM
Thru Silver Lake and Canada Pension XM take private buyout:
SAP will receive $7.7B
Maybe not a stratospheric return but far from a horrible loss
Logic 101:
The sell of Qualtrics was a long due process ever since its wrong acquisition back in 2018. Its failed integration within SAP ecosystem and the pressure from the shareholders who didn't agree with the Bill Mcdermodt's decision back then meant going public with it as a separate entity was a first logical step and then sell it eventually.
This has absolutely nothing to do with restructuring or layoffs whatsoever. It was in the pipeline and everyone knew it
Economics 101:
One of the main reasons why workers get laid off is because the company decides to cut back on costs in some way. The need can arise from the fact that the company is not making enough profits to cover its expenses or because it is making losses or because it needs substantial extra cash to address paying off debt.
what does this have to do with layoffs???
About Qualtrics financial profit/loss and stock-based compensation, see the 2021 and 2022 reports (link at the bottom)
2022
Revenue: 1.46 B$
Cost of Revenue: 429 M$
Expenses - R&D: 427 M$
Expenses - Sales & marketing: 892 M$
Expenses - General & Admin: 758 M$
Total Costs & Expenses: 2.07 B$
OPERATING LOSS: 1.05 B$
Total stock-based compensation, including cash settled: 1.03 B$
2021
Revenue: 1.07 B$
Cost of Revenue: 285 M$
Expenses - R&D: 324 M$
Expenses - Sales & marketing: 643 M$
Expenses - General & Admin: 877 M$
Total Costs & Expenses: 2.13 B$
OPERATING LOSS: 1.06 B$
Total stock-based compensation, including cash settled: 1.06 B$
As a result of the SAP Acquisition, our stock-based compensation expense reflects the recognition of both equity-classified awards and liability-classified awards. Liability-classified awards are settled in cash in accordance with SAP’s employee equity compensation programs. Our stock-based compensation expense for the year ended December 31, 2021, 2020, and 2019 consisted of $1,057.1 million, $224.0 million, and $876.2 million of liability-classified and equity-classified awards. During the year ended December 31, 2021, 2020, and 2019 awards of $79.4 million, $388.6 million, and $312.8 million were settled in cash. Liability-classified awards are recorded according to mark-to-market accounting.
https://www.qualtrics.com/news/qualtrics-announces-fourth-quarter-and-full-year-2022-financial-results/
One of those large problems could be Elliott Group finishing the carnage at Salesforce and coming back to SAP like Freddy Krueger….
Does not bode well for the future of SAP. I see a choice that CK and the Board had - keep the one investment that SAP had which was spinning off substiantial profits year after year ( putting aside that mcdermott grossly over paid on the acquistion) OR go for a one time cash infusion.
Seems to me that only companies who have something to worry about in the near term focus on how much cash they can raise quickly in an attempt to fend off large problems.
We shall see which case it was.
Finally the chapter is over! A complete and utter waste of time!