German ERP juggernaut SAP hit a sandbank in the third quarter, as non-GAAP revenue growth slowed to 16%, well below the 24% to 27% the company had projected earlier this year, but in line with the less ambitious correction the company made earlier this month.
Co-CEO Henning Kagermann said the company will cut € 200 million in costs in the fourth quarter, marking a 10% reduction that he said will continue into 2009. The cuts will come through a previously announced hiring freeze and other measures, including reductions in travel and general expenses.
As he did when he first sounded the alarm in early October, Kagermann blamed the slowdown on a sudden downturn in the economy in the second half of September.
“In my 26 years at SAP, I’ve never witnessed such a sharp decline in customer spending in such a short period of time,’” Kagermann said on a conference call with analysts today.