SAP Freezes Hiring and Travel to Fund AI Pivot

​​SAP SE is freezing most new hiring and pausing internal travel unrelated to artificial intelligence to fund a significant push into AI technologies. According to internal memos, the company will exclusively focus new recruitment on core AI roles and specialists while reducing spending with suppliers. A company spokesperson confirmed that customer-facing work and critical AI projects remain fully funded.

These cost-cutting measures are part of a broader reorganization by CEO Christian Klein to pivot the company toward an autonomous enterprise model and counter competition from firms like Anthropic PBC. The shift follows a previous restructuring program that eliminated 10,000 jobs. This financial tightening comes as investor concerns that AI may reduce demand for traditional software have contributed to a significant share price decline over the past year, with reports citing drops between 33% and 46%.

Strategically, the company has faced mixed results in acquisitions. While SAP recently engaged in a $3.1 billion deal with Schneider Electric SE, reports indicate SAP lost a $3.1 billion bid to acquire industrial-AI firm Cognite to Schneider Electric.