Monday, July 15, 2024

CEO of Tech Company Announces 2,200 Job Cuts in Email to Employees

US-based tech company UKG conducts mass layoffs, cutting 2,200 workers

US-based tech company UKG made headlines this week as it conducted mass layoffs, impacting an estimated 2,200 workers, which accounts for about 14% of its workforce. CEO Chris Todd addressed the situation in an email to employees, explaining that the company needed to focus on critical areas of growth.

According to a report by Business Journal, UKG had a total of 15,882 employees as of June, making it one of the largest software developers in Massachusetts by local workforce. The job cuts were primarily focused in the US, across all departments.

In the email sent to employees, Todd mentioned that the layoffs were originally planned to be announced next week, but due to internal news and speculation, the decision was expedited. He emphasized that while the decisions impacting the team were difficult, they were necessary to redirect resources and invest in key areas of product innovation to better support customers.

A company spokesperson stated that UKG is implementing organizational changes to aggressively focus on critical areas of growth and support their long-term strategy. They assured that support will be provided to colleagues through this transition.

This isn’t the first time UKG has made cuts, as last year, about 265 roles were eliminated, representing approximately 1.7% of its workforce globally. UKG spokesperson Domenic Locapo explained that the changes were necessary to align with their future vision and roadmap, eliminate duplication, and improve efficiency to ensure the company’s continued success.

Formerly known as Kronos, UKG rebranded after merging with Ultimate Software in 2020 to form Ultimate Kronos Group. The company’s recent actions reflect their commitment to adapt to the evolving tech landscape and position themselves for future growth and success.

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