SAP has paused most hiring and internal business travel worldwide as it grapples with rising costs associated with artificial intelligence. The German software giant implemented the measures in July 2026 to control spending while channeling funds into AI products, tools, and acquisitions. According to a current SAP employee cited by 404 Media, the restrictions remain in place.
The hiring pause does not cover every role. SAP is focusing recruitment on selected positions that support the company’s long-term AI strategy. AI-related jobs, customer travel, development trips, and essential AI training are exempt from the freeze. Internal business travel has stopped under the new spending rules, but customer meetings and trips tied to SAP’s AI development program can continue.
“Be disciplined in how we spend,” the company told employees, as rising AI costs put more pressure on budgets. SAP noted that AI adoption has increased token usage and related costs across its operations, with more AI services running at scale across the company.
The company also plans major spending on AI products, internal AI use, and acquisitions involving data and artificial intelligence. A SAP spokesperson said the measures will help direct money toward areas with stronger long-term value, allowing the company to invest in AI while reducing spending in less critical areas.
The move highlights a growing challenge for technology companies investing heavily in AI. While AI can improve productivity, running large AI systems can also create significant costs. SAP’s decision underscores a clear shift in priorities: AI skills and projects remain vital, while other hiring and spending now face tighter controls.
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