SAP slows down hiring and reduces spend due to coronavirus

SAP has revealed that the business software supplier has slowed down its hiring and reduced discretionary spend.
SAPGermany-based SAP had 101,150 employees till March 2020 as compared with 98,659 in March 2019.

SAP had an employee base of 43,143 (42,497) in EMEA, 30,088 (29,662) in Americas, 27,632 (26,791) in Asia Pacific.

SAP said it moved quickly to adopt a virtual sales and remote implementation strategy to enable the large majority of its employees to work from home and a continuation of its focus on current customers and the addition of new ones.

“SAP is slowing hiring and reducing discretionary spend in addition to natural savings e.g. from lower travel and virtual rather than physical events. SAP is focused on ensuring continuity for its customers and partners, and SAP’s data centers are online with appropriate backup plans,” SAP said in a statement announcing its first quarter result.

SAP reported revenue of €6.521 billion (+7 percent) and operating profit in of €1.210 billion during the first quarter of 2020.

SAP posted €2,011 billion (+29 percent) from Cloud and €5.397 billion (+7 percent) from Cloud & Software.

As the impact of the COVID-19 crisis rapidly intensified towards the end of the quarter, a significant amount of new business was postponed. This is reflected, in particular, in the significant year over year decrease in software licenses revenue, SAP CEO Christian Klein said.

SAP added approximately 300 SAP S/4HANA customers in the quarter, taking total adoption to approximately 14,100 customers (+23 percent). In the first quarter, more than 45 percent of the additional SAP S/4HANA customers were net new.

Danone, Dehner Holding, AO Tander, Indorama Ventures, and Cogna Educacao have selected SAP S/4HANA. Korea Southern Power, Bristol-Myers Squibb, PVH Corp, and Anta Group recently went live on SAP S/4HANA. Sun Life Financial and Hitachi High Tech began deploying SAP S/4HANA in part or entirely in the cloud. MTU Rolls Royce is now live on SAP S/4HANA Cloud.

More than 550 customers selected the SAP SuccessFactors Human Experience Management (HXM) Suite that provides solutions for core HR and payroll, talent management, employee experience management and people analytics since their launch in May 2019.

Chobani, Volaris, and Hyundai Motor Europe were some of many competitive wins. Banco Galicia, one of the most important private banks in Argentina, relies on SAP’s innovative cloud solutions to boost and transform its growth strategy. With more than 3 million clients, the bank acquired SAP SuccessFactors and Qualtrics, improving the experience of more than 6,000 employees.

SAP earlier said its total revenue will be €27.8 to €28.5 billion as compared with the earlier target of €29.2 billion to €29.7 billion in 2020.

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