SAP's Workforce Reduction Plans Spark Concerns Among Employee Representatives

The management of SAP, a prominent software company, has announced a shift in its approach to workforce management, indicating plans for gradual staff reductions rather than large-scale layoffs.

According to recent statements from SAP's leadership, the company intends to decrease its workforce by one to two percent annually. This method is perceived by some as indicative of a significant cultural shift within SAP.

Eberhard Schick, the head of SAP's works council, has expressed strong reservations about these new policies. He emphasized that while voluntary departures are anticipated, the focus should be on investing in employee development rather than utilizing funds for severance packages. Schick advocates for greater investment in training, particularly in areas related to artificial intelligence.

SAP's CEO, Christian Klein, has clarified that while the company aims to maintain a leaner workforce, it also plans to create new positions in growth sectors. He stated that the overall employee count would continue to increase, albeit at a slower rate compared to revenue growth.

The management sees potential for cost savings particularly in sales and software development through automation and AI technologies. Klein noted that AI could enhance sales processes, such as preparing for client meetings and facilitating documentation. However, he assured that the human element in sales would remain intact.

Additionally, SAP is expanding its partner network, particularly with consulting firms, delegating certain sales responsibilities to these partners. This strategic move aims to optimize operations while still ensuring that there is a robust human workforce engaged in sales and customer interactions.

In the domain of software development, some roles may see a reduction in demand due to automation, while other areas, especially those involving AI and data management, are expected to experience growth. Klein acknowledged that virtually every job function at SAP will undergo transformations prompted by advancements in AI technologies.

In conclusion, while SAP's plans for gradual workforce reductions aim to streamline operations, concerns persist about the implications for employee culture and job security. The works council advocates for a more proactive approach to workforce development, emphasizing the importance of investing in skills and training to adapt to an evolving technological landscape.