- HR and payment management firm, Paycom, will cut more than 500 non-client roles, replacing them with AI systems.
- The firm continues strong AI demand, having recently raised its 2025 revenue and profit forecasts.
- Paycom stock was impacted in trade, slipping over 4% on Wednesday.
In a dramatic pivot, Paycom announced on October 1, 2025, that it will lay off more than 500 employees at its Oklahoma City headquarters and replace them with artificial intelligence or automation systems. The company described the move as part of a “workforce restructuring due to efficiencies in advanced automation and AI-driven technologies,” as described in an email to employees. Local media described the restructuring as part of streamlining back-office operations.
According to Paycom, the impacted roles are entirely non-client-facing back-office functions. They told employees that many of the tasks were being automated or, in some cases, had become redundant through recent investments in core business systems. Paycom said it will offer transition support, including severance packages, outplacement services, and internal job opportunities for affected workers.
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This is the first mass layoff in Paycom’s history, and drew immediate public and employee backlash. On social media, some ex-employees claimed sudden firings were “not a good fit” with little warning, and internal confusion over who was targeted.
Interestingly, just a day before, on Paycom’s X account, the company put a post on how automation would make work easier as well as addressing the ‘costly compliance risk’
Paycom stock takes a beating
Traders and investors were quick to give the stock a beating. Paycom shares fell by over 4% to shut shop at $199.23, falling below the $200 mark. The company had recently upgraded its 2025 forecasts on AI-driven demand, which had lifted investor sentiment, but this restructuring seems to have played spoilsport for now.
Founded in 1998 in Oklahoma City by Chad Richison, Paycom is a leading cloud-based payroll and human capital management (HCM) software provider. The firm has rolled out several AI and automation features to enhance efficiency and reduce friction for clients. Now it’s applying the same internally by taking on a risk, having to balance automation and reputation.
