SAP Abandons Women's Quota under U.S. Pressure: A Shift in Diversity and Inclusion Policies
Greetings, folks!
SAP is poised to cut costs through enhancing diversity.
In an unexpected turn of events, SAP has decided to scrap its goal of having 40% women in its workforce, as per an email leaked to "Handelsblatt". The move comes after the company felt the heat from American legalities. According to the report, SAP needs to tweak its diversity initiatives to suit the current legal landscape.
The new rulebook means that SAP says goodbye to the overall women's quota and the specific promotion of women to leadership positions at certain levels. Instead, a "Business Health Culture Index" will serve as a gauge for short-term bonus payments for executives.
SAP maintains its commitment to diversity and "integrative leadership", but with a global presence and a strong foothold in the USA, it's simply playing ball with the law changes.
Oh, by the way...
The U.S. government's pressure is notably linked to the Trump administration, which has spearheaded changes to make diversity, equity, and inclusion (DEI) programs promoting equal opportunities illegal under U.S. federal law. Companies like SAP face threats of prosecution if they don't comply.
This move might come as a blow to SAP, which has been acknowledged for trailblazing diversity in the tech sector. The decision reflects a broader trend among multinational companies that are scaling back their DEI commitments due to U.S. legal pressures. Other companies, such as T-Mobile's U.S. subsidiary, have already taken similar steps earlier in 2025.
The Fine Print
Under this new climate, SAP has dumped its 40% female workforce target for its U.S. workforce of about 16,000 employees. It has also abolished gender quotas for women in management positions and stopped using gender diversity as a factor in executive compensation. Additionally, the diversity and inclusion department has been merged with the corporate social responsibility department, thus losing its independent status.
SAP still upholds its commitment to fostering an inclusive workplace but underscores its intent to conform to legal requirements worldwide.
Here's a quick recap: SAP's U.S. operations have substantially scaled back their diversity and inclusion targets and programs, doing away with gender quotas and eliminating diversity as a factor in leadership pay, all in response to legal constraints from the Trump administration[1][2][3][4][5].
In response to the U.S. government's pressure under the Trump administration, SAP has chosen to discontinue its gender quotas and women's workforce target, opting instead for a Business Health Culture Index to determine executive bonus payments (finance). Furthermore, SAP's diversity and inclusion department has been merged with the corporate social responsibility department, signifying a shift in its focus (business).
