SAP is freezing most hiring and pausing non-AI-related travel to redirect funds toward a major AI investment push, according to an internal memo confirmed by the company. New hiring will focus almost exclusively on AI roles, and supplier spending will also be cut. CEO Christian Klein has been restructuring SAP around AI throughout 2026, including a new 'Autonomous Enterprise' concept and a Business AI Platform. SAP's stock has dropped roughly 33% this year amid fears AI will erode demand for its traditional software. The company also missed out on acquiring industrial-AI firm Cognite, which was acquired by Schneider Electric for $3.1bn. Questions remain about whether SAP's early AI tools deliver sufficient value, especially as most customers are still mid-migration from on-premise to cloud.
