Software Giant SAP Stops Most Travel and Hiring Because of AI’s Soaring Cost
SAP says it needs to “be disciplined in how we spend.” That includes still freezing hires and travel. Unless it's to do with AI, of course.
SAP, a leading software company, has temporarily halted most travel and hiring activities, according to an internal email accessed by 404 Media. The decision was primarily driven by the rapidly increasing costs associated with AI. However, exceptions were made for travel and hiring directly related to AI development and training programs.
The company is currently deploying a new AI tool across its entire workforce, which is expected to further escalate costs. SAP's leadership emphasized a focus on investing in critical AI roles and strategic acquisitions, while being disciplined about spending. Travel restrictions are set to continue, with only mission-critical AI trainings and customer-facing trips being allowed.
The email also highlighted that cost-cutting measures are aimed at preserving SAP's competitive edge in the rapidly evolving AI-driven software industry.
Written by urgent.news from 404 Media's reporting — not their text. Machine-written; read the original for the full account.
