SAP expanding to Big Apple, but will stay in Newtown Sq.
PHILADELPHIA >> A top SAP executive Tuesday night said the company was shifting identifying its headquarters focus in America from Newtown Square to New York City while also addressing generational differences.
But Wednesday afternoon a company spokesman stressed the firm remains firmly committed to its Delaware County campus and has no intentions of leaving.
Brian Reaves, senior vice president and head of Diversity and Inclusion at SAP, said the company is establishing a presence in the Hudson Yards development in Manhattan.
“It’s going to be a beautiful location for us starting next year and what’s great is there will be a lot of innovation,” he said. “There’s going to be an entire floor dedicated to innovation from engagement from young people.”
While he said the North American headquarters would remain in Delaware County from a “legal perspective,” a dynamic shift within the company would occur.
“Quite honestly, kind of like what’s happening in Germany right now, although we’re in Waldorf, Germany, where we’ve now opened up Berlin, people start to see the major cities as … I think in people’s minds regardless of what the physical paper looks like, I would think they’ll start to brand us more tied to New York City,” he said. “So, it’s pretty exciting, pretty exciting coming up.”
He said some employees will be moved from Newtown Square to New York City; however, others will remain here.
“It will be a good presence,” he said, adding that SAP has various customers in the New York area, particularly the Financial District. “It just seemed natural for us to be there.”
A company spokesperson Wednesday afternoon stressed the company has no plans to leave Newtown Square and remains fully committed to keeping its North American headquarters here.
Atle Erlingsson, head of communications for SAP North America issued the following statement:
“In order to remain competitive and attract the best workforce around the country, we must have office locations in key cities and communities, and this includes Delaware County.
“While we are excited about opening our new office in New York City, we are firmly committed to Newtown Square. This is our North American home and we have no intention of leaving or moving our employee base. We have more than 2,800 employees at this office and are deeply embedded in the community.
“The greater Philadelphia area provides a worldclass talent pool and this has played a key role in enabling SAP to be the world’s leading software company today and into the future.”
New York offers the second largest software company in the world an opportunity to attract talent, Reaves explained, adding that he still sees a longterm presence in the Philadelphia suburbs.
“I don’ think we’re going to exit Delaware County. We’re going to grow both because we’re growing significantly but … when you start to try to attract the best of the best when you think of Millennial talent or Generation Z type of talent … given a choice do they want Newtown Square or is it sort of New York City?”
He compared it to SAP’s situation in Germany, where the company was founded with a location in Waldorf, while younger people preferring to spend time in Berlin.
“Newtown Square has always been significant to us and that community is significant to us but I do think it sort of broadens our aperture or our possibilities with regard to attracting some of the best talent,” he said.
He spoke of how Millennials have a different mindset than other generations and have a different approach to things such as health care or banking, as they rely and are natural with digital interaction.
At SAP, where 45 percent of the workforce is 18 to 24 years old, Reaves said they work to include various generational experience and attitudes in teamwork.
“It’s not either-or,” he said. “It’s pairing sort of the mature approaches, tried and true, many experience approach with the Millennial mindset.”
He explained their teams are blended with talent from a variety to get the optimum amount of engagement and invention.
“You bring the best of the mindsets to the table and you’ll wind up with a much better solution,” Reaves said. “The merging of those two worlds is how SAP continues to innovate in a very, very feasible, responsible and desirable way.”
“In order to remain competitive and attract the best workforce around the country, we must have office locations in key cities and communities, and this includes Delaware County. — Atle Erlingsson, head of communications for SAP North America issued in a statement