Thursday, October 16, 2008

SAP staff to go on `forced’ leave

German news site Bild has reported that German software company SAP has plans to send employees on forced leave between Christmas and New Year as part of a cost savings programme.

The software company has also instituted a hiring freeze, is canceling travel and cutting third-party expenses, such as consultants, external training and recruitment.

The company has also issued a freeze on internal IT spend. An email sent by co-CEOs Henning Kagermann and Leo Apotheker to staff last week, reads.

Headcount and hiring freeze: "There is a complete headcount and hiring freeze, and all existing job vacancies will be canceled. This includes any temporary workers, interns, and students. There will be no replacements for employees leaving SAP. No internal transfers may take place. Only those written offers sent to a candidate and/or internal transfers agreed to on or before October 7, 2008, will go forward."

Third-party expenses: "Since we are not hiring, all engagement with external recruiters must cease immediately. We will discontinue engagement with management consultants and evaluate the impact this has on ongoing projects. Until further notice, all external training is to be canceled. Internal meetings must be held within SAP buildings, and you cannot rent external conference facilities for this purpose."

Travel: "Cease ALL internal non-customer-facing travel in October...Any non-customer-facing travel already booked should be canceled immediately, even if this incurs penalties." SAP sales people will also have to fly coach from now on unless they use miles to upgrade.

SAP announced last week that its revenue for the quarter would fall short of its guidance due to a sudden drop in orders at the end of September.

Also, in what it's calling a "symbolic gesture," executive committee members will take 10 days less vacation, according to MarketWatch.

SOURCE : Times of India

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