UKG, the HCM software company formed from the 2020 merger of Ultimate Software and Kronos, is reportedly laying off approximately 950 employees, according to an internal memo shared on social media.
The cuts, which are said to have begun April 15 arrive three months after industry analyst Josh Bersin declared the company had “staked out” a leadership position in what he described as a $6.5 trillion market for frontline workforce management.
‘Restructuring’ the UKG workforce
In a reported UKG leadership message to staff, which a user shared on Reddit, close to 600 employees were notified of their departure effective Wednesday, with another 350 asked to remain through a transition period ending Aug. 31, 2026. Affected employees were told to expect an email from the company’s People Employment Practices team between 8 a.m. and 9 a.m. ET and were instructed to work from home.
The reason for the layoffs? “As part of our ongoing transformation, we are restructuring our global workforce,” according to the memo shared on social media. HR Executive viewed dozens of posts on LinkedIn shared by people impacted. Those reporting layoffs present titles including associate engineer, product management business analyst, creative director, field marketing manager, customer success manager and more.
Several affected employees at UKG Canada have contacted attorneys at Samfiru Tumarkin LLP about their severance offers, according to a briefing from the firm. According to accounts shared on social media by people who said they received separation notices, the severance package includes a three-month lump-sum severance payment, a transitional period lump sum plus continued pay and benefits through the Aug. 31 separation date, outplacement support for three months post-separation and a potential enhanced benefit tied to individual tenure and contributions.
Read more: Should HR pros fear layoffs? 3 tech CEOs debate AI’s impact on jobs
A company in ongoing transition
UKG became backed by private equity firm Hellman & Friedman following the 2020 merger. Annual recurring revenue (ARR) now exceeds $3 billion, with total revenue around $5 billion and strong growth reported into 2026. UKG’s customer base has grown to over 80,000 organizations across 150+ countries. The layoffs, according to a UKG spokesperson, represent around 6% of UKG’s workforce.
Wednesday’s cuts are not an isolated event. UKG has been moderating its headcount since the merger:
- 2022: More than 200 IT employees laid off
- 2023: Another round of more than 200 cuts
- July 2024: Approximately 2,100 employees, roughly 14% of its then-15,000-person workforce, were let go. CEO Chris Todd cited a need to invest in AI and customer success
- February 2026: Additional restructuring, including the closure of its Uruguay operations, affecting roughly 300 employees
- March 2026: A WARN Act notice filed in California for 209 employees at its Santa Ana office took effect March 16
- April 15, 2026: Approximately 950 additional employees notified
Read more: How AI use can help frontline workers beat burnout, according to new UKG research
UKG ‘market leader’ for frontline worker tech, according to Bersin
When UKG cut 2,100 jobs in July 2024, industry analyst Josh Bersin framed it as a deliberate strategic bet rather than a sign of distress. Writing at the time, Bersin described the move as a redeployment of resources to new strategic areas including AI infrastructure, advertising, and small and mid-sized business sales. He noted the cuts would free up an estimated $250 million to $350 million for reinvestment. His framing: “Sometimes you have to get smaller to grow—and that’s the new business lesson of AI.”
As recently as January 2026, Bersin wrote favorably about the company’s direction. In a briefing after UKG’s annual user conference, Bersin described CEO Jennifer Morgan (who took over from Chris Todd) as bringing “strong leadership” to a company he saw as the frontrunner in the market for frontline workforce management. At that time, he called UKG’s integrated platform approach a “market leader.”
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