Paycom Software, Inc., an online payroll and human resources software company based in Oklahoma City, has decided to fire more than 500 workers, which is a big deal. The Oklahoman says that the revelation, which came out in a press release on Wednesday morning, is the first substantial layoff in the company’s history since it was founded in 1998.
The corporation said that the main reason for the job layoffs is the use of artificial intelligence (AI) technology, which will take over most of the jobs that are being removed.
Focus on roles that are automated and don’t involve clients
Paycom stressed that the restructure is purposeful and only affects roles that have been entirely automated. The business said in its release:
“The updates only affect automated roles that don’t deal with clients, while roles that do deal with clients stay focused on the high-touch, relational service that Paycom is known for.”
Paycom’s offices at 7501 W Memorial in Oklahoma City is where the layoffs are taking place.
To lessen the effects of the mass layoffs, the company said it would help affected workers make the transition by providing full support, which includes:
Severance packages
Services for outplacement
Getting to know about job openings inside the company
Paycom also said that it is still actively hiring and recruiting in important sectors like sales, software, implementation, and support roles, which involve working directly with clients and are therefore less likely to be automated right away.
Layoffs Happen at the Same Time as Strong Financial Performance
It’s especially surprising that Paycom is going to lay off a lot of people since the company has been doing well financially and the job market in the area is healthy.
The Oklahoman pointed out that the job cuts come at the same time as Oklahoma City’s record-breaking four-year streak of unemployment falling below 4%.
Paycom’s financial reports also show that the company is doing well. The most recent quarterly financial report, which came out on June 30, 2025, showed that the corporation had raised its midpoint projection of yearly revenue from $2.03 billion to $2.05 billion.
The filing also said that the business had raised its earlier estimates for its 2025 core earnings (EBITDA) from between $843 million and $858 million to between $872 million and $882 million. This means that the layoffs are not because the company is in financial trouble, but because it wants to save money by using technology more efficiently.