Software competitor buys Lake Mary's Stromberg, lays off 69 people, plans more cuts early next year
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KRON | Quote | Chart | News | PowerRating -- Software developer Kronos Inc., which just acquired industry rival Stromberg LLC of Lake Mary, is closing a large portion of the newly acquired operation and has already laid off 69 workers, or about half the local workforce, state records show.
Massachusetts-based Kronos, which produces time-and-attendance software for businesses, issued pink slips to the workers on Oct. 14, after completing its buyout of Stromberg, the records show.
Kronos acknowledged in a letter to the state's Agency for Workforce Innovation that it didn't give workers the 60-day advance notice required by state law but said it would instead provide each worker with 60 days' pay and benefits.
Another 25 workers are to be dismissed early next year, company officials said, which will leave about 45 employees.
"We retained a significant portion of the Stromberg workforce that was focused on professional services, product support and engineering," Kronos said Wednesday in a written statement.
It is the second Orlando-area software operation to cut jobs this month as the result of a merger. The former Metavante Technologies Inc. division in Altamonte Springs laid off 50 workers last week after it was acquired by Jacksonville-based FIS, also known as Fidelity National Information Services Inc.
Kronos, based in Chelmsford, Mass., and Stromberg had been leading competitors in the market for automated payroll, employee-management and related systems that help companies reduce costs and operate more efficiently. Kronos acquired the Lake Mary company last week from Paychex Inc. Financial terms were not disclosed. Stromberg had been a subsidiary of Rochester, N.Y.-based Paychex for the past five years.
Paychex, a payroll, business services and human resources outsourcing company, said it sold Stromberg as part of a refocusing of its business model. Paychex produces time-and-attendance software for small-business clients, while Stromberg focuses on larger companies.
Richard Burnett can be reached at rburnett@orlandosentinel.com or 407-420-5256.
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