SAP SE is freezing most new hires and pausing non-essential internal travel. The German software giant is reallocating these funds to finance a significant investment in artificial intelligence.
An internal memo reveals that new hiring will focus exclusively on critical AI-related roles. The company is also reducing expenditures with external suppliers to further cut costs.
CEO Christian Klein is leading this reorganization to accelerate the development of the Joule AI assistant. An SAP spokesperson confirmed the company is prioritizing AI talent and technologies over other spending areas. This aggressive shift highlights the pressure on enterprise software companies to pivot as AI disrupts traditional business models.