Works Council Demands Job Guarantees Through 2026 as SAP Slashes Spending to Focus on AI
Published on 07/04/2026 at 09:12 | Redaktion boerse-global.de
The works council at software giant SAP is pushing for an extension of employment protections until the end of 2026, as the company tightens its belt and redirects resources almost exclusively toward artificial intelligence. Employee representatives are also calling for greater investment in retraining programmes, reflecting growing unease among the 110,600-strong global workforce — roughly 25,000 of whom are based in Germany.
The cost-cutting drive, confirmed by a company spokesperson on 2 July, means SAP will now only hire for roles with a direct link to AI technologies. Internal business travel not related to AI has been eliminated, though customer-facing activities and specific AI projects remain exempt. Spending on external suppliers is also under review. The goal is total alignment with AI — the strategy championed by chief executive Christian Klein, who has taken on additional responsibilities for product development from Muhammad Alam in order to steer AI efforts more directly.
The austerity push follows an earlier restructuring that saw SAP eliminate around 10,000 positions globally, including 3,500 in Germany. The company currently employs roughly 110,600 people worldwide.
Market pressures help explain the urgency. SAP's shares have fallen more than 30 percent since the start of the year, even as the company maintains a market valuation of roughly €150 billion. The firm has also missed certain internal benchmarks: it had set a 2025 revenue target of €8.5 billion for support of on-premise software, but the actual figure came in at €10.5 billion — suggesting customers are slower to migrate to the cloud than hoped.
SAP has also been cautious on acquisitions. It expressed interest in the Norwegian software company Cognite, but ultimately lost out to Schneider Electric, which paid $3.1 billion for the firm.
With a new AI software suite and tight cost controls, SAP aims to defend its leadership in enterprise software. The works council, however, is making clear that employees expect commitments in return — both in terms of job security and access to the training needed to thrive in an AI-centric future.
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