SAP is implementing significant spending restrictions, including a freeze on most new hires and a pause on internal travel. The company will redirect these funds toward artificial intelligence initiatives. An internal memo states that new hiring will focus exclusively on critical core AI roles. This move is part of a broader strategy to reallocate resources rather than a simple cost-cutting measure.
SAP is reviewing investments to prioritize AI-related capabilities, talent, and technology. The decision follows an executive reshuffle designed to bring AI development closer to the CEO’s office. The company aims to reskill existing employees for AI-assisted roles instead of pursuing widespread layoffs. CEO Christian Klein stated that AI advancements could fundamentally change the nature of work and software coding.