UKG Layoffs 2023

UKG Layoffs 2023: what happened with the company?

Is there UKG layoffs in 2023? Job layoffs are being made by UKG, one of the biggest software companies in the state, with local employees. As a result, it has joined a group of tech companies that claim they must prioritize the correct investment sectors. UKG, previously Kronos, announced in March 2023 that it had reorganized several aspects of its organization. It had eliminated about 265 positions globally, or roughly 1.7% of its employees.

The American international technology corporation is Ultimate Kronos Group (UKG). It has offices in Lowell, Massachusetts, and Weston, Florida. It offers services for managing the workforce and human resources.

The focus at UKG is on the people. They promote amazing workplaces and create lasting relationships with their clients. This is to show what is possible when companies invest in their employees. UKG is a passionate supporter of the importance of culture and belonging as keys to success. Their Life-Work Technology approach to HR, payroll, and workforce management solutions for all people was born from a historic merger. It thus produced one of the world’s top HCM cloud companies.

The firm assists more than 70,000 organizations worldwide and across all industries. They aid in anticipating and adapting to their employees’ needs outside of work.

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Overview of UKG

UKG Layoffs 2023

The business was established after the merger of Ultimate Software and Kronos Incorporated in April 2020. Aron Ain, a former CEO of Kronos, served as the combined company’s CEO and chair until July 1, 2022. He resigned from that position to take the executive chair position.

On February 20, 2020, Ultimate Software and Kronos Incorporated intended to launch a new cloud computing company. They worked with a focus on human capital management and workforce management. One of the biggest cloud computing corporations is the combined company, valued at $22 billion.

Aron Ain, CEO of Kronos, was named chairman and CEO of the newly formed business. It has more than 12,000 workers with offices in Lowell, Massachusetts, and Weston, Florida. The company was officially renamed Ultimate Kronos Group (UKG) in August 2020 after the merger.

UKG said in December 2021 that it had been the subject of a ransomware attack. This attack was discovered on December 11, 2021. The malware attack affected the Kronos Private Cloud feature, which many large enterprises use. Many reports claimed the Log4Shell zero-day vulnerability may have contributed to the attack. But UKG said it lacked proof that Log4Shell was to blame for the ransomware incident.

Kronos’ data leak exposed “millions” of records

The ransomware assault on Ultimate Kronos Group allegedly exposed the personal information of millions of customers and employees. This is according to a class-action lawsuit.

The March 4, 2022, lawsuit brought against UKG criticized the payroll service provider for handling a ransomware incident in December 2021. During the attack, the Kronos Private Cloud was interrupted. The client payroll systems and other services were taken offline for a long time.

Later, UKG revealed that the hackers had also taken “a minor volume of data” from two clients. The class-action lawsuit asserts that the Kronos breach revealed millions of employees’ sensitive and confidential personal identifying information (‘PII’) to cyber criminals.”

About the lawsuit

The lawsuit’s initiating plaintiff, Adam Bente, works at the Family Health Centres of San Diego (FHCSD). FHCSD employs more than 1,800 employees, according to the lawsuit submitted to the U.S. District Court for the Southern District of California. Following the attack on UKG, they all experienced some pay delays.

Bente and the other class members are represented in court by The Law Offices of Ronald A. Marron. “Plaintiff, like all Class Members, was postponed payment of his paycheck after the data breach,” the lawsuit claimed. 

According to the complaint, “Plaintiff, like all Class Members, has lost time and money from having to prepare for the impact of the delay in payment of his paychecks.”

Anyone affected by the ransomware assault is listed as a possible class member in the lawsuit. They may result from a payment delay or the danger of data disclosure. Any of the hundreds of companies that use UKG’s software and services might employ these individuals.

According to the lawsuit, the timing of the occurrence made many of the victims’ distress from the attack worse. The lawsuit explains that UKG is at fault by blaming a weak cybersecurity infrastructure for the ransomware assault.

The lawsuit contended that UKG had the knowledge and capacity to develop a strong cybersecurity system. But it failed to do so, potentially exposing the data of millions of people and delaying employee paychecks at a critical time.

According to the lawsuit, ransomware attacks and cyberattacks have increased worldwide in recent years.

Layoffs at UKG

UKG reported that it reorganized some of its operations and eliminated 265 positions worldwide or roughly 1.7% of its employees.

As mentioned earlier, after completing a massive merger with Florida-based Ultimate Software, the workforce software business changed its name to UKG in 2020. With two offices in Lowell and Weston, Florida, UKG employs more than 15,000 people worldwide today. It employs around 1,800 workers, particularly in Massachusetts.

An email from Domenic Locapo, a representative for UKG, stated that “much has changed in the world of workplace and HR technology since we started UKG three years ago.”

He concluded that we must make the appropriate investments to seize the opportunity before us. “We saw several areas where our teams were duplicating efforts, were not aligned with our long-term goals and roadmap, or were opportunities for increased efficiency. By doing these things, we are setting up UKG to succeed.

The return to the workplace is not subject to a company-wide policy at UKG, according to Locapo, as each team sets its guidelines. He omitted to mention how many Massachusetts employees were affected by the layoffs.

Approximately nine months after Aron Ain, the CEO of Kronos, resigned, he took over as executive chairman of UKG after serving as CEO for 17 years. In 2022, Chris Todd, a longtime corporation executive, succeeded Ain.

UKG has been reducing its employment since the end of last year. Thus, it is joining an expanding list of tech companies that are both privately held and publicly traded. The causes have ranged from a bleak economic outlook to tight consumer budgets harming sales. It was also caused by the need to reduce an overstaffed workforce that grew with the pandemic and specific business challenges.


With the addition of Pat Wadors as its new chief people officer, UKG increased its total workforce by 1,500 personnel in fiscal 2022. It is a rate nearly twice as fast as it was in fiscal 2021.

“Our U Krewers’ incredible teamwork, creativity, perseverance, dedication, and care that we all have for our customers drives our success,” stated Todd. The UKG Great Place to Work Hub will help UKG and our customers enter the next phase of what HCM technology can do for their employees and businesses in 2023. We are well-positioned to take advantage of the 

Amazing opportunities lie ahead of us. If we stick to our plan, we’ll be on schedule to generate $4 billion in revenue, exceeding our initial expectations by a year. “

Vice President of UKG Dave Gilbertson stated, “

“After declining labor activity in December, the labor market experienced peace in January. Layoffs are still concentrated mainly in white-collar industries and are not common. There is still a high demand for workers, particularly in frontline and hourly positions. As recently laid-off white-collar and salaried professionals take up well-paying, highly skilled frontline roles in the upcoming year, we expect to see a blue-Collar boomerang. This will further ease the labor shortfall.”

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