Thread regarding SAP layoffs

Reducing hours to prevent getting laid off

Our area executive has informed several managers that they can encourage employees to cut their hours to avoid layoffs, transitioning from full-time to part-time contracts. SAP HR has engaged McKinsey & Company to determine which employees will be let go, focusing primarily on full-time positions. By reducing hours, employees can sidestep impending layoffs, but the situation is more complex.

Area executives are pushing this strategy not just to save jobs but to illustrate that full-time employees are less favorable compared to part-time workers in the context of AI, which is expected to enhance productivity. While the desire to avoid layoffs is strong, there is a moral dilemma in participating in a scheme that seems designed to benefit only McKinsey and the executives, who stand to gain financially from the layoffs.

Previous layoffs at SAP cost the company €2.5 billion, with minimal savings as funds were redirected to executive bonuses, share buybacks, and AI expenses.

In Germany, refusing to accept reduced hours could jeopardize welfare benefits, complicating the decision further. The question remains: how will you respond if your manager suggests reducing your hours?


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| 2749 views | | 26 replies (last ) | Reply
Post ID: @OP+1kxb69v5a

26 replies (most recent on top)

@xr that would be like throwing a baby’s security blanket or pacifier into the garbage

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Post ID: @11s+1kxb69v5a

It starts with cxos top level to bottom level hopefully and not vice versa

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Post ID: @11b+1kxb69v5a

@e1 SAP should kick McKinesy to the curb & reduce their payout.

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Post ID: @xr+1kxb69v5a

@gm the harassed person gets fired or SAP make their life he-l so they quit.

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Post ID: @jx+1kxb69v5a

@ev and the one who raised the harassment will get promoted, like miss tai in HR...

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Post ID: @gm+1kxb69v5a

@OP Swing the DEI ax. Save money and improve everything.

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Post ID: @fw+1kxb69v5a

@e3 If there's a legitimate harrassment complaint, legal & HR will deduct the expected settlement from the cost center beforehand.

In case you didn't know how this works.

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Post ID: @ev+1kxb69v5a

@eg Gero was against this. He wanted better integration with SAP. But Torsten Zube wanted the people leads to become the development managers. He has also asked for this in other areas besides his current one. Let us not forget how many layoffs he has been a part of in the last 13 years.

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Post ID: @em+1kxb69v5a

@ed Torsten Zube is a snake. and People Leads were made Development Managers to not lay them off, with the support from Gero obviously.

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Post ID: @eg+1kxb69v5a

If HR are so bad, then why did the Signavio upper management make HR people development managers in HPOM? They may have people management experience but no technical experience. Torsten Zube made this decision and he is an SAP executive. Obviously he did the right thing as he is one of the best executives SAP ever had.

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Post ID: @ed+1kxb69v5a

@e2 I reacted with -1 not because of the comment is wrong but because the answer is No, you do not trust HR. HR exist to protect the company not the employees, their work is to reduce liabilities. Never approach HR if you have a complain to make, you will become a target and will kick you out. Betriebsrat on the other hand, are the ones who could protect employees. They can accompany you during a formal complaint process, you just need to be careful and to some extent lucky, because some of their member are just political gangsters. Managers and HR will not like when you involve a Betriebstrat member for sure, they will start defensiveness.

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Post ID: @ea+1kxb69v5a

@e2 You must be new indeed.

HR is only there for one purpose: to protect the company from the employees in case anything goes wrong.

That is why quite often molested people leave (with a high payout) after signing a NDA: it protects the company.

HR is never on the side of the employee unless this helps the company.

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Post ID: @e3+1kxb69v5a

If you go on part time - in most jurisdictions they will use your part time salary to calculate any redundancy payout. I suspect this is McKinsey being clever and telling SAP - here's how you can cut the required statutory redundancy pay in half - make your workers go on part time, then lay them off (and then McKinsey charged millions for their advice). So as one person observed - it's a trap. One thing to remember - you absolutely cannot trust HR and you absolutely cannot trust the exec level - L1 or L2. Their only and singular interest is self-preservation. They do not care about the impact to SAP of letting talented people go - they only care about their income and their retirement package.

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Post ID: @e1+1kxb69v5a

Don‘t fall for this.

To quote a Star Wars admiral: „It‘s a trap!“.

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Post ID: @dn+1kxb69v5a

I would reduce my hours. Not to prevent a layoff but because it will give me more headspace and time to actually apply for jobs where the culture is not nosediving to he-l. There is going to be no VERP so I will just go if I find something similar to my current salary. The market is not so good right now so we need to wait. HR knows this and that's why they are making everything worse for employees.

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Post ID: @dm+1kxb69v5a

I am a Sikh. I carry my dagger. No one can force me to work part-time without getting into trouble.

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Post ID: @df+1kxb69v5a

I don‘t want to work part time.

I came to WDF to make as much as possible. I work hard. That is the Indian way.

No part time for me.

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Post ID: @d1+1kxb69v5a

A typital "creative" idea from HR...

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Post ID: @cr+1kxb69v5a

@bx thaey are the same...

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Post ID: @cq+1kxb69v5a

Perhaps McKinsey could start a new revenue stream via opi--d addiction?

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Post ID: @cb+1kxb69v5a

Doesn't say much for SAP HR if the clowns at McKinsey are involved.

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Post ID: @bx+1kxb69v5a

@a6 SAP has also spent tons of money in the last 5 years buying Emarsys, AppGyver, Signavio, Taulia, LeanIX, WalkMe, SmartRecruiters, Reltio, Prior Labs and Dremio.
And before that Qualtrics at US$8 billion, CallidusCloud at US$2.4 billion, Concur at US$8.3 billion, Ariba at US$4.3 billion, SuccessFactors at US$3.4 billion, Sybase at US$5.8 billion and Business Objects at €4.8 billion.
And to add on top layoffs and compensation from 2023-2025, investments in AI etc.

Where is the money honey?

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Post ID: @bg+1kxb69v5a

What country are you located in?

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Post ID: @b0+1kxb69v5a

It looks like a setup to me...

It's a two step layoff strategy:
First move people from full-time to part-time
Then move them out.

Layoff part time employees is cheaper and less restrictive in the law compared to full-time.

Accepting voluntarily to change your contract from full-time to part-time to somehow save your job is the d-mbest thing you can do.

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Post ID: @ar+1kxb69v5a

@a4 Maybe it is to show that part time employees + AI are more valuable than full-time employees. This will make for a good AI story even if the company suffers. After all, these executives are untouchable because the supervisory board is filled with their friends. I think the real reason SAP needs layoffs now is because there was too much money spent on AI. And we don't have the money to pay the AI bills and also hand out executive bonuses and also do share buybacks. So this is the easiest path for HR and the executives.

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Post ID: @a6+1kxb69v5a

What’s interesting since when has SAP ever been concerned about saving jobs in the last 10 years. Why so now? Could it be they realize the AI strategy is on a path of mediocrity.

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Post ID: @a4+1kxb69v5a

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