The head of Massachusetts-based software company UKG intended to hold the development until next week, but as speculation circulated, he delivered the news the day before the Fourth of July: Roughly 14% of its workforce will be laid off.
That means about 2,200 of an estimated 15,000 employees worldwide will soon be left without a job, according to an email Chris Todd, the company’s chief executive officer, sent on Wednesday.
“We are announcing a number of organizational changes that will allow us to aggressively focus on critical areas of growth and to provide flexibility to actively invest in important new areas,” Todd wrote in his email.
“These changes mean we have made the difficult decision to say goodbye to ~14% of our colleagues,” he added. “A top priority through this change is treating those leaving with care, dignity, and respect, and providing support to make their transitions as smooth as possible.”
UKG — also known as Ultimate Kronos Group – is a multi-billion dollar privately held company that came to be when Florida-based Ultimate Software merged with Lowell-based Kronos in February 2020.
The company provides software to businesses, schools, and government agencies to assist with human resources, payroll, and workforce management.
It remains unclear how many Massachusetts-based employees will be losing jobs.
UKG will be offering those laid off severance pay, a “prorated 2024 annual bonus for eligible departing employees,” job search support, continued health benefits for a defined period, and access to a company employee assistance program, Todd wrote in his email.
In a statement to the South Florida Sentinel, where UKG is co-headquartered, a spokesperson said the organizational changes will allow the company to “redirect resources and invest in key areas of product innovation while enhancing how we support our customers.”
The development caught backlash on social media, with some employees describing their layoffs as a blindside.
“I was impacted by the layoff. My manager didn’t know. My manager’s manager didn’t know,” an employee stated on Reddit. “To say the least, every one of us is disappointed and sick to our stomach on how we all found out. I still don’t understand how UKG is rated to be the best company to work at when everyone that I know is not happy with how the company is running things.”
This is not the first time in recent memory that UKG has eliminated some of its workforce. The company last March cut about 260 jobs.
Large technology companies including Amazon, Apple, Google, and Microsoft, among others, have all cut a part of their workforces as they incorporate automation and artificial intelligence.
