Paycom Cuts 500 Jobs, Cites AI Automation as Reason for Mass Firing

Paycom Software, Inc. has cut more than 500 jobs at its Oklahoma City headquarters, telling staff that artificial intelligence and new software tools have made their roles unnecessary. The mass layoff, which affects about 7% of the company’s workforce, marks a major shift for the HR technology firm as it moves to replace human back-office work with automated systems. The cuts were confirmed in a report by the Journal Record.

Key Facts

• The Numbers: 500+ employees fired (approx. 7% of staff).
• The Departments: Primarily Quality Assurance (QA) and Development.
• The Severance: 10 weeks of pay, plus transition help.
• Source: Journal Record, KGOU

The Automation Pivot

Paycom executives stated the cuts are part of a plan to use AI-driven technologies to do the work previously handled by these employees. The company released a statement saying the move comes from “efficiencies in advanced automation.”

The cuts specifically target “non-client-facing” roles. Paycom claims that automated workflows can now handle tasks in quality assurance and software development that used to require human oversight. While the company says it is still hiring for sales and client-service jobs, the message is clear: if your job does not involve talking to a paying customer, it is at risk of being automated.

The Zoom Webinar Firing

Employees described a chaotic and cold firing process. Reports indicate that staff members received text messages or emails early in the morning telling them not to come to the office. Instead, they were ordered to join a mandatory Zoom call.

During the call, mics were muted and cameras were off. An HR representative read a prepared script informing everyone on the line that their employment was over immediately. Former staff members said the process felt robotic. “You could tell they were just reading off a script,” one affected worker said. “It didn’t feel heartfelt at all.”

Silence Required

The severance package comes with strings attached. To receive the 10 weeks of pay, fired employees must sign a separation agreement that includes a non-disclosure provision. This prevents them from speaking publicly about the specific terms of their exit or disparaging the company. Personal items left at the office are being packed up by the company and shipped to the former employees’ homes.