SAP to Layoff 3000

channelnewsasia.com

36 pointsforgingahead6 comments

“Analysts are worried that the lucrative cloud segment for big tech companies could be hit hard as customers look to cut spending.”

Is SAP really that much at risk? New business, ok. But their software is usually deeply embedded into core business processes, it’s tough to cut back on SAP once you bought into it.

It’s opportunistic I think. Rev is up and as you say SAP is like tar to get out of.

IMO There’s a market expectation that “big tech must make cuts” and therefore they either feel their share price would be under pressure if they don’t show something, or more cynically they see an opportunity to trim a little that would look a lot less worse than if they did it another time.

I think your comments nails it. Both the reason you give play a role. I am very interested in the earnings reported today and the salary round this year also announced today.

Disclaimer: I work for SAP

Yeah but they did hire in excess between 2020-2022.

I don't think this is true. We even had a hiring freeze for most of 2022.

Having a hiring freeze and actually not hiring in excess are two different things.

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