Thread regarding SAP layoffs

Payback for "no significant" layoff's comment?

We were not all that surprised at the move to reduce CEO's to just one and have it be a German and even Hasso's comment that this action was taken "earlier than planned" confirms that the co ceo role was just another short term SAP experiment.

But the timing is really interesting in that only two weeks ago Jen Morgan was on the financial talking heads shows informing that there would not be any "significant" (whatever that means) layoffs in Q2 and now wonder if this comment was approved by the Elliott team(?), in any case, this statement is now off the table.

For those of use who have been at SAP for many years, we are all too familiar with these continuous, never ending and ineffective reorganizations which have always been just experiments with no accountability and take place one after the other up and down the company and completely stymie the organization and destroy strategic vision and execution. Just at the time when we need stability the most, we get the same old SAP - which isn't going to cut it for the drastic times ahead.

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Post ID: @OP+14A4gMy6

16 replies (most recent on top)

Layoffs are bound to happen. No company is immune to the global effects on business within this unique pandemic situation. Even though SAP has deep coffers to weather such a storm, it hasn't survived this long in the market without being prudent with it's money. Definitely watch the next month or two, and expect layoff offs to happen with low performing business units that aren't likely to have any upside within coming months. SAP Analytics Cloud is a great example...huge development, sales, and enablement force behind it, very little to show for in terms of overall customer adoption/usage of the product (aka the dreaded shelfware). Just wait and you will see....

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Post ID: @6mct+14A4gMy6

Obvious that Jen didn't get the needed approvals to make  such a pledge on Cramer's show.  Just 3 weeks into Q2 and already  27 Million  people in US have filed which shows how bad Q2 will be and how irresponsible it was to make such pledge and the shareholders were not going to let it stand.        
In the words of my VP and SAP speak,  "to tell it like it is".  Christian is good guy and when he was  controller under Luka had well earned reputation of  being hard worker who was on 7 days a week, no question about it.   But the fact that someone who was preparing quarterly financial statements 3 years ago with  no  prior c-level or product or sales/marketing experience is now running a global company in such uncharted times, is frankly quite absurd.  Now is when the company needs a seasoned executive having deep experience and credibility in all areas in and out of SAP. Ironically  or the two, Jen might have fit the profile of a CEO best. Safe bet would  be  to look for more changes  at the top during Q3, but a lot of hurt will be felt ahead of this in attempt to salvage top positions.

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Post ID: @2vnk+14A4gMy6

The comment that Jen made on Crammer without knowing how bad the markets are going to shape out and that is pretty bad caused her to be removed. Also it could be the "wing-it" attitude at her level .
Q2 is worst and SAP needs to make big decisions . We have 70% consultants not billable .

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Post ID: @2ywt+14A4gMy6

it had to be the no layoff comment behind this, just given the fact that she was effectively released immediately and more importantly just 24 hours before the Q1 analyst call, tells that there were some very very upset people with her and they wanted to make sure she had no opportunity to say anything further on the official company market call. The turmoil is exhausting.

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Post ID: @2drh+14A4gMy6

The Good Ole White Boys prevail. Jen Morgan's rise to fame @SAP was based on her relationship with former CEO Bill McDoormat. Her appointment to the board was lame attempt to shine in the Inclusion theme that has died down significantly. She was merely a token. Let's see if Bill picks her up at Service Now.

As reported in a recent tech article on Bloomberg, there are silent restructurings happening and will continue from the top down. Already seeing several VPs in the US saying farewell on LinkedIn. The worst is yet to come for those in the US @SAP. As usual, Germany will be spared the slaughter.

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Post ID: @1qlz+14A4gMy6

https://www.fool.com/earnings/call-transcripts/2020/04/21/sap-se-on-sap-q1-2020-earnings-call-transcript.aspx

Sorry but not true, Luka make no such comment in today's Q1 call or in the public as was by Jem morgan. The Markets weren't too happy either after today's analyst call. read for yourself.

actually Luka told opposite on the margin perfermence, they focus on expense and efficiency drivers for balance of year ( and we know what it means), But maybe Luka told you something privately.

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Post ID: @1eqs+14A4gMy6

Well said!!

Her promotion to Co-CEO was always a publicity stunt for Women in Leadership, Diversity, and a US/Global partnership image.

SAP is a right wing German, white male centric organization.

BUY AMERICAN!! Let SAP continue to partner with China, Iran, Russia, and others.

@Jim Cramer - call them out for why they are and grow a set.

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Post ID: @1idg+14A4gMy6

By the say everyone. Luka basically said the same thing today. Guess he’s next get fired?

If you believe that you’re a fool

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Post ID: @pix+14A4gMy6

This action was taken with just 24 hours before the Q1/2020 Analyst call that she was supposed to host with no real detail about what was the real reason now was the time to change out the CEO position and she 's out the door immediately ? Looks like somebody wasn't too happy. I guess we shouldn't really expect the company to tell the true story behind this.

Last time we saw a departure like this at CEO level was Leo and then we had a 4% reduction ( or at least that was what we were told the number was, even if they were mostly all in the US and it really was more than 4%). Makes sense that he public comment about locking the company out from Q2 layoffs triggered this, which in that case we should be expecting some rough times ahead, unless you are based in WDF.

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Post ID: @diz+14A4gMy6

Agreed, this was an astonishing commitment to make publicly in a time of real uncertainty and doubt that Elliott wanted it hands tied to this comment and so this action had to be taken.

I am sure this will have a cascading effect and we will now see more people downstream getting moved all about. It's frustrating all of the volatility and departures the company has endured since last summer - hard to believe how much this company has changed.

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Post ID: @rmx+14A4gMy6

I agree this is payback for those comments it was never officially communicated that there was a 90 day window of no layoffs. I understand that this SAP 'family' will be hit hard in Q2, the irony of her comments are quite amusing however.

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Post ID: @zug+14A4gMy6

Given the unexplained and very sudden departure after only 6 months, it would seem this was the reason behind. Q2 is forecasted to be the worst quarter in all time history, dwarfing 1929, I don't see how someone can get on Jim Cramers show and make such a blanket statement to the marketplace not knowing at all what lies ahead and when layoffs do start, then SAP would have lost all credibility and paid a very heavy price for such statement, hence agreed, this is the likely reason behind this move.

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Post ID: @qcd+14A4gMy6

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