SAP reorg, job cuts underway

SAP's reorganization continues after losing key executives overseeing technology and cloud sales.

SAP is cutting an undetermined number of positions as it continues to retool its cloud business and other roles following the departure of Vishal Sikka, who led the company's technology, platform and development efforts.

Following Sikka's departure , SAP said Shawn Price, head of cloud sales, is planning to leave May 15.

It's unclear how many workers are being cut. SAP will argue that some cloud executive positions are to be eliminated because the company is all cloud now. There's also an argument for a flatter organization and different skill set.

SAP spokesman  Andy Kendzie said in a statement:

At the beginning of this year our leadership team set out to simplify everything to do anything and become the cloud company powered by HANA. Our goal is to become simpler, more agile, faster and easier to work with. This is a broad company wide effort to make SAP more effective and strengthen our innovation leadership.

This initiative is about simplifying SAP for the customer not about job cuts. In fact our plan is that we will have more employees at the end of 2014 than at the beginning of the year. While we cannot avoid restructuring efforts in certain areas we will continue to invest in our innovation leadership and become the cloud company.

Nevertheless, the chatter in the SAP ecosystem has picked up dramatically amid the flux and customers need to keep an eye on any change of direction. SAP is widely expected to name Bill McDermott it's sole CEO ahead of its Sapphire conference in Orlando. SAP uses the powwow to talk about its product roadmap, strategy and wine and dine big customers.

McDermott's first mission at Sapphire will be to calm the base, outline the reorg and instill confidence in the customer ranks.