The spirits that I called: Because so many people jump on it, SAP has for the current voluntary redundancy program over twice as much pay as originally planned. The first reduces the profit.
The voluntary severance program will be more expensive for the software giant SAP as intended. In a letter to his colleagues cheered SAP CEO Bill McDermott: “The restructuring program is developing faster than originally anticipated.”
But that costs more. Instead of originally EUR 250 million the software giant is now planning for the full year with 470-530 million euros. “We have been surprised by the demand for the early retirement program offered in Europe,” admitted Chief Financial Officer Luka Mucic speaking to the German Press Agency a.
Since SAP in future wants to sell more software to rent and older programs obsolete are about three percent or 2,000 of the world’s 74 000 employees in the course of the year, according to the original plan to switch to a new job or moved to a severance payment of a certain age to go. “Probably will have even participated at the end of four per cent of people worldwide in the program,” Mucic said. To date, several hundred employees
The expenditure will not probably increase again, so Mucic had reported.. “Since the programs in this month phased in Germany and soon in France, the cost is well planned.”
Given the positive response it will need in 2016, no further restructuring program. “We think that we have thus brought the majority of our transformation on the part of the workforce behind us.” In return, the software company expects savings in the mid three-digit million euro range. The full effect will only become apparent in 2016 but, as Mucic. Still, SAP plans to employ more staff than last year due to its growth in spite of disposals at the end of the year.
In the second quarter profit after tax was due to severance pay only once by 16 percent to 469 million euros , These detract from the conversion to the subscription model the margins. Because the proceeds in the new business, however flow over several quarters rather than in a large one-off payments for licenses, which pushes in the changeover period to win.
On the stock market, the initially caused disappointment. During the morning the SAP share reduced their losses and worked his way into positive territory. For the second quarter of the strong dollar had sales growth of SAP accelerates again. The positive effect of the weak euro will continue to weaken but in the course of the second half, Mucic said. Revenues increased by 20 percent to 4.97 billion euros. Without the help of currency effects which corresponded to an increase of eight percent. SAP makes more than one third of its revenues in the euro zone – similar is the share of the US business
A second thrust received from the SAP fledgling business with software, which is sold in the subscription model.. In cloud business software to Rent SAP was the revenue more than doubled thanks to recent acquisitions. The group now accounts for about a tenth of its revenue from software that is sold in subscription models. The greatest demand is still in the United States.
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