Paycom Terminates Over 500 Employees, Replacing Roles with AI Technology

Paycom Lays Off Over 500 Employees, Citing AI Automation as the Driving Force

OKLAHOMA CITY — In a shocking turn of events, Paycom, a leading payroll and HR technology provider, announced the termination of more than 500 employees on Wednesday, citing a shift towards artificial intelligence (AI) and automation. Employees received the news via a text message early in the morning, instructing them not to report to work.

The layoffs, described by the company as a “workforce restructuring,” were aimed at streamlining back-office roles through advanced automation technologies. However, many of those affected expressed feelings of betrayal and confusion, stating they had been trained on the very AI tools that replaced their jobs.

“I first found out through a text message. I opened it and it said, ‘Please do not come into the office today,'” one anonymous employee shared with KOCO 5. “It felt like a slap in the face. I was crying the entire time during the webinar where they announced the layoffs.”

The online meeting, scheduled for 8:30 a.m., revealed the extent of the layoffs and the company’s rationale. Paycom’s statement indicated that the changes would only impact non-client-facing roles, a claim that many employees disputed. “We’re all client-facing. If Paycom said it wasn’t, that’s not true,” one former employee remarked.

Paycom’s decision to implement AI-driven solutions has raised questions about the future of work within the company. While the firm maintains that these technologies will enhance operational efficiency and client satisfaction, employees are left wondering about their own job security. “You can say the word automation all day long, but is it for our clients? Is it for us? I don’t know,” another affected worker stated.

Despite the layoffs, Paycom insists it is still hiring across various departments, although the roles being filled will not resemble those eliminated. The company has offered severance packages that include ten weeks of pay and transition assistance, but many employees feel the support is insufficient given the abrupt nature of the layoffs.

As the dust settles from this significant workforce reduction, the impact on the remaining employees and the company’s culture remains to be seen. Paycom’s commitment to automation may lead to further changes in the workforce landscape, raising concerns about the balance between technological advancement and employee welfare.

This is a developing story, and KOCO 5 will provide updates as more information becomes available.