UKG Lays Off 950 Employees in AI-First Restructuring

Layoffs Announced

UKG, formerly known as Ultimate Software, notified approximately 950 employees on April 15 that their jobs would be eliminated in a global restructuring. The layoffs represent 6% of the company's workforce, according to a statement UKG provided to the South Florida Sun Sentinel.

Many of the affected employees worked at UKG's South Florida offices in Sunrise and Weston. The company did not respond to inquiries about the exact number of employees affected in that region.

AI Cited as a Factor

UKG said the restructuring reflects "rapidly evolving market shifts — including changes in technology driven by AI, customer expectations, and how software companies compete." The company described the move as part of its ongoing transformation to become what it calls an "AI-first company."

The statement did not directly attribute the job cuts to AI replacing specific roles. Instead, it framed the layoffs as part of a broader effort to align structure, skills, and investments for the future.

Transition Period for Some Employees

According to a layoff notification posted on Reddit, close to 600 employees are leaving immediately, while roughly 350 will remain with UKG for a defined transition period to ensure continuity for customers and partners.

Staff were told not to come to the office on the day notices arrived by email. A memo instructed employees to work from home to support each other with care, empathy, and respect.

Previous Layoffs and Company Background

UKG laid off 14% of its workforce in late 2024, or about 2,200 of its 15,000 global employees. The company was formed in 2020 through the merger of Ultimate Software and Kronos. Ultimate Software was founded in 1990 and acquired by Hellman & Friedman in 2019 for $11 billion.

Jennifer Morgan became CEO in 2024 and has been restructuring operations, including relocating some jobs overseas, likely to India.

Reactions and IPO Speculation

Dozens of affected employees posted on LinkedIn that they are open to new employment. Some said they plan to take time to reset.

Analysts believe the moves suggest UKG is preparing for a public offering. Anthony Presley, an expert in technology sector leadership, said in a LinkedIn post that UKG has shed about one third of its team since private equity took over and is looking more profitable, possibly gearing up for an IPO later this year or next.

UKG disputed that characterization. Domenic Locapo, senior director of public relations for UKG, said the company actually has more employees today than at the time of the Ultimate/Kronos merger.

Sources

• UKG, formerly Ultimate Software, lays off 950 employees, many from South Florida offices