UKG, a software company headquartered in Massachusetts, recently announced its intention to downsize its workforce by approximately 14%, representing roughly 2,200 employees. CEO Chris Todd states this step is part of a broader restructuring strategy to streamline operations.
Mr. Todd stressed the move’s necessity, given the challenging market conditions. He assured the affected employees of the company’s full support during the transition and emphasized the importance of adaptation and innovation in this challenging period.
UKG, also known as the Ultimate Kronos Group, is a billion-dollar private entity established in 2020 by the merger of Ultimate Software and Kronos. Their operations span various sectors, offering human resources, payroll, and workforce management services.
The number of Massachusetts clients affected by these layoffs is still undefined, but UKG has made provisions for severance pay, prorated 2024 annual bonuses, job search aid, and continued health benefits.
UKG’s workforce downsizing amid restructuring
However, tallying the amount set aside for these payouts is proving difficult due to the uncertainty around the total number of affected employees.
The decision to downsize has been met with significant pushback on social media, with one employee publicly expressing his shock and disappointment on Reddit. This post quickly gained traction, leading to widespread criticism of the company’s actions.
This downsizing action by UKG is not a standalone event, as the company slashed around 260 positions as recently as last March. Other tech giants, including Amazon, Apple, Google, and Microsoft, have also reduced their staffs largely due to the surge in automation and artificial intelligence.
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