back to article SAP to spend €950m on restructure: The thing is, 'loyal workforce', we want the 'best' minds

SAP is embarking on a €950m restructuring project to update internal skills, move on some of the old guard, and "simplify" the org chart. The German ERP and CRM biz confirmed the overhaul - its first major one since 2015 - as it outlined a 5 per cent increase in revenues to €24.7bn for calendar 2018. The restructure comes as …

  1. Will Godfrey Silver badge
    FAIL

    Here we go again

    They're obviously impressed with IBMs stellar employment performance,

  2. Anonymous Coward
    Anonymous Coward

    Off with their heads

    >Both he and CFO Luca Mucic emphasised this was not about cost-cutting or headcount reductions - Mucic said savings would be invested in areas to help it grow.

    Somehow that investment will very much not be in re-training their existing work force.

  3. Erik4872

    Best minds or cheapest minds?

    "In countries where we don't have the skill set that we want, we're obviously going to come to a nice agreement with our employees to treat them very fairly... and hire the best minds in the world."

    Someone stole IBM's super-secret playbook. I'm assuming the only country that has the requisite combination of cloud, social and mobile skills just happens to be India. :-)

    At least they're being up front about the early retirement thing...hopefully that doesn't involve 2 weeks' severance like IBM changed their policy to a while back.

    1. Anonymous Coward
      Anonymous Coward

      Re: Best minds or cheapest minds?

      Yes, the strange implication in jobs massacres like this is the implicit admission that they have not employed the best minds in the world earlier, but now, all of a sudden, they will. That is quite a kick in the head to those they firing.

      If follows that they should also have employed the best minds in the world in the management and we would not see mess like this.

      1. Ledswinger Silver badge

        Re: Best minds or cheapest minds?

        If follows that they should also have employed the best minds in the world in the management and we would not see mess like this.

        Only if the best minds can predict the future. SAP built a business model around old world CRM and ERP, the future is more about buzzwords like AI and cloud, ergo they need more buzzword bingo specialists, and fewer people who know ageing platforms (eg ISU, that goes out of support in 2025).

        If you reckon that you can manage the recruitment, training and retention to ensure your business has the skills and capacity to meet all future customer needs without surplus capacity or redundancies, then you most certainly will be in demand as an executive.

        1. Anonymous Coward
          Anonymous Coward

          Re: Best minds or cheapest minds?

          Considering SAP is in the very business of making enterprise resource management software I'd say there is no excuse for SAP. Even though executing on SAP reports have been described as driving a car by looking through the rear view mirror, it is very rare that the market changes overnight. What does change quickly is the management perception of the market, and that may indeed change overnight. And it is still no excuse.

  4. FozzyBear Silver badge

    SAP will treat Employees fairly

    SAP?

    I know these CxO drones are prone to boiler plate HR/ marketing BS but seriously

  5. Doctor Syntax Silver badge

    "we're obviously going to come to a nice agreement with our employees to treat them very fairly... and hire the best minds in the world."

    What if the best minds in the world are good enough to come to the conclusion that SAP's idea of "fairly" might not coincide with their own in a few years' time?

  6. Aristotles slow and dimwitted horse Silver badge

    Having worked @ SAP in the UK...

    Having worked for SAP in the UK... I actually think that from a moral perspective they will try to do right by those employees in terms of early retirement, or possible redundancy. I do agree though that stating they will "hire the best minds" is a bit of a kick in the teeth for the excellent people I worked with when I was there. Although that was a few years ago now so things may have changed internally since then.

  7. adam payne Silver badge

    "In countries where we don't have the skill set that we want, we're obviously going to come to a nice agreement with our employees to treat them very fairly... and hire the best minds in the world."

    So if you aren't cloudy trained you're out on your ear.

    Both he and CFO Luca Mucic emphasised this was not about cost-cutting or headcount reductions - Mucic said savings would be invested in areas to help it grow.

    Why not grow by re-training existing staff in cloudy stuff.

    1. lglethal Silver badge
      Go

      "Why not grow by re-training existing staff in cloudy stuff."

      Because Graduates in India are so much cheaper!

  8. disgruntled yank Silver badge

    skill sets

    Would these be cloud-relevant skill sets, such as the skill of living on water vapor?

  9. M.V. Lipvig

    Of course,

    as we all know, the best minds work for a third.

  10. Anonymous Coward
    Anonymous Coward

    I hate sap

    Parked under a tree once in the summer. Never again.

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