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SAP shares hit by another dose of CEO honesty

Simon Quicke

Although the honesty is refreshing the continuing openness that senior executives at SAP are engaging in is unlikely to help the vendor's share price keep on an upward path.

Last week the vendor's CEO Henning Kagermann admitted that the crisis in the world economy had hit the last few weeks of its third quarter when he revealed the vendor's Q3 preliminary trading statement.

Following up on that the CO-CEO Leo Apotheker used a conference platform in Berlin today to admit that it was not sure how long the bad times would last and what it would mean for the IT industry.

While not on the scale of the Chancellor Alistair Darling admitting to The Guardian that this recession could be the worst for 60 years the continued reference to economic problems is unlikely to win SAP's leadership team much respite from the stock market.

SAP has revealed that since announcing that orders have been hit it has introduced some cost cutting measures including a recruitment freeze and greater scrutiny of travel budgets.

According to reports from Reuters, SAP is also in consultation with staff with a view to shutting down operations between Christmas and the New Year.

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