Is a 14%Workforce Cut a Sign of Weakness or Strength? What UKG's Restructure Teaches Us
Walking the floor at the HR Florida Conference, I was struck by a clear trend among the 400 vendors, a huge number were workforce management companies. Among the workforce management vendors, a significant portion promised smarter, faster, and more intuitive workforce management solutions. This highlighted just how competitive the industry has become. It made me want to take a closer look at one of the giants, UKG (Ultimate Kronos Group), and see how it has maintained its dominance during a significant period of internal transition.
UKG was formed in 2020 by the merger of Ultimate Software and Kronos, creating a powerhouse in cloud-based human capital and workforce management software. The combined company boasted around 12,000 employees and millions in revenue.
After the excitement of a merger fades, the real work begins. UKG was no exception. The company faced a common post-merger problem of duplicate roles and overlapping processes. This internal redundancy created hidden costs, slowing the company down and pulling resources away from innovation.
Instead of making quick, across-the-board cuts, UKG took a deliberate approach. The company started by conducting a thorough evaluation of all business functions, categorizing them as either core or non-essential. Core functions were those directly tied to product development, core technology, and strategic growth. Non-essential functions were often supportive roles that had become duplicated or could be augmented by technology. This analysis led to the difficult decision to reduce its global workforce by 14% in 2024, impacting about 2,400 employees. This was a strategic choice to leverage AI, innovation and automation. UKG aims to handle routine support and testing tasks more efficiently.
In essence, UKG made the difficult but necessary choice to become leaner in its operations to become stronger in its innovation. By thoughtfully evaluating its core functions and cutting non-essential tasks, UKG has positioned itself not just to maintain dominance, but to evolve with the market. For anyone watching the workforce management space, UKG’s disciplined approach to restructuring makes it a company to watch as it moves forward with greater focus and efficiency. This sends a strong message: UKG is not simply shrinking. It is strategically reshaping its workforce for the future, balancing necessary efficiency with continued investment in its core operations.
For business leaders, the lesson is clear. Proactive restructuring is not a sign of failure but a strategic tool for growth. The goal is to build a more agile, focused, and resilient organization.
Is your company prepared to make these strategic decisions?
Company Bridge Program is designed to help organizations navigate these exact challenges. We provide the framework and expertise to help you evaluate your labor force, identify opportunities for efficiency, and reinvest in your future growth—just as UKG did.
Don't wait for a crisis to force your hand. Schedule a consultation to learn how our Bridge Program can help you build a stronger, more competitive company today.
