Paycom announced that it laid off more than 500 employees as part of its strategy to expand artificial intelligence and automation technologies.
In a news release, the Oklahoma City-based payroll and human resources software company said it initiated a “workforce restructuring due to efficiencies in advanced automation and AI-driven technologies that will impact a limited number of back-office roles.”
A source confirmed that over 500 employees were part of the layoffs, according to KOCO 5 News. The company also filed a WARN Notice, and affected workers learned about the decision on Wednesday.
Paycom stated that the restructuring affects only non-client-facing positions that have been automated.
“As part of its strategy, Paycom has made significant investments to automate core business systems, improve operational scalability and accelerate innovation, which ultimately increases client satisfaction,” the company said in its release. “These investments have created new efficiencies and reduced the need to backfill or hire for roles that can be automated.”
The company noted that its automation efforts aim to streamline operations, allowing staff to focus on client-driven services. Paycom emphasized that customer-facing teams remain unaffected by the restructuring.
To support employees impacted by the cuts, Paycom will provide transition resources. The company said those include severance packages, outplacement services, and access to available internal job opportunities.
Paycom has invested heavily in AI systems designed to handle repetitive and administrative work. Executives stated that the changes enable the firm to scale its operations more efficiently, positioning the business to sustain strong growth and innovation.
The company framed the layoffs as part of its broader plan to strike a balance between advanced technology and continued client service. Officials stated that the move demonstrates their commitment to maintaining competitiveness while supporting employees during the transition.