Trust Deficit at SAP as Software Giant Pivots to AI, Freezes Non-AI Hiring
05.07.2026 - 02:52:51 | boerse-global.de
Just 54 percent of SAP employees trust the board, according to internal surveys — a figure that underscores the tensions simmering inside Germany’s largest software company as it pushes a sweeping restructuring centered on artificial intelligence. Since July 2026, the Walldorf-based group has sharply limited new hires outside AI-core roles and paused internal business travel without a direct AI connection. The savings are being funneled into cloud computing capacity, model licensing fees and specialized AI talent.
Chief Financial Officer Dominik Asam said the company must control its cost base to create room for strategic investments. To keep a tighter grip on spending, SAP has revived a “Spend Council” — a committee that monitors outlays across divisions. The move mirrors a broader industry trend: Amazon, Adobe and Citigroup have all recently reallocated their budgets toward AI priorities.
Reskilling, Not Just Cutting
CEO Christian Klein has taken personal charge of AI development. He argues that the job profile of software developers is changing fundamentally: manual programming is losing relevance, while the ability to steer AI outputs is gaining importance. SAP is betting on retraining rather than large-scale layoffs. After roughly 10,000 job cuts in 2024, the company has created more than 3,500 new positions in strategic growth areas since 2023. Works councils hold extensive co-determination rights, giving employees a formal voice in the transition.
Yet the personnel shift comes with internal friction. The low trust rating — drawn from employee surveys — suggests the board has struggled to sell the vision internally even as it resets the workforce.
Market Skepticism and a Missed Deal
Investors have shown little enthusiasm for the bill that comes with the AI push. SAP shares traded at €139.40 on July 4, 2026, down 2.5 percent from the previous session. The stock has lost roughly 30 percent since the start of the year and sits far below its 52-week high of €264.85. Analysts at JPMorgan voiced concern about expected margin pressure.
A failed acquisition added to the headwinds. SAP had pursued a takeover of Cognite but lost the bidding war to Schneider Electric, which secured the industrial software firm for $3.1 billion. Industry observers note that SAP's cloud transition is also moving more slowly than anticipated. On-premise license revenue still stood at €10.5 billion in 2025.
The next quarterly report, due on July 23, 2026, is expected to shed fresh light on both the financial trajectory and the progress of the AI strategy.
