AI has often been promoted as something that will benefit the workforce. People will have an easier time doing their jobs. Or they won’t need as much time to complete tasks. We’ve been told to imagine 4 day, 3 day, even 2 day work weeks. AI on the job would allow us time for our own personal pursuits like hobbies. Maybe that day is coming. In the short term, it feels like AI is just taking jobs and leaving folks without rather than benefiting them. Paycom is one of those companies that seems to be replacing employees with AI. Let’s talk.
What is Paycom?
Paycom, headquartered in Oklahoma City, provides human resources, payroll, and benefits support for a variety of companies.
What types of employees were laid off?
Paycom said that the 500 laid off employees were in non-customer facing roles. At least one employee has reportedly contradicted that claim and said some fired employees did work with clients. Also, it was reported that these employees were in charge of quality assurance tasks.
How do we know that Paycom is replacing employees with AI?
Not every recently announced layoff is due to AI. However Paycom has stated that AI has led to efficiencies in their business. Because of this increased efficiency due to AI, Paycom no longer needs as many employees. Paycom will likely save money on not just salaries, but also the benefits these employees are no longer receiving.
I’m curious what this AI is being used for and how well developed it is. While AI holds a lot of promise, there are still a number of use cases where human intuition and intellect are better. If Paycom introduces this solution too early without enough testing of possible issues, they may put themselves in a vulnerable position with systems that don’t really serve their customers.
Additionally, some are speculating that AI is being used as an excuse for layoffs that the company wanted to happen anyway. Possibly, they are saying AI is the reason for layoffs so investors will think this company is making a smart move. Either way, people are losing jobs to AI or the mere idea of AI.
Explore More
Paycom lays off 500 employees, will replace jobs with AI
https://www.kosu.org/local-news/2025-10-01/paycom-lays-off-500-employees-will-replace-jobs-with-ai
What’s the Real Story Behind the Paycom Layoffs?
https://thelostogle.com/2025/10/16/whats-the-real-story-behind-the-paycom-layoffs
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