Paycom to lay off 500+ Oklahoma workers as AI consolidates back-office work: What HR should do now
Paycom Software, Inc. announced a workforce reconstruction that affects more than 500 Oklahoma employees. The company invested in automated core business systems and says these efficiencies reduce the need to backfill roles that can be automated.
According to Paycom, the updates impact only non-client-facing roles that have been automated, while client-facing roles remain focused on high-touch service. The company added it is still hiring across sales, software, implementation, and service, and is providing transition assistance.
What happened
The layoffs center on back-office positions at Paycom's Oklahoma City operations. Leadership framed the move as the result of AI-driven process improvements and automation across core systems.
Oklahoma Attorney General Gentner Drummond responded with support for the company's long-term contributions to the state, stating confidence in leadership's decisions on behalf of employees and shareholders.
Why this matters to HR leaders
This is a clear signal: automation is removing repetitive, rules-based work faster than most teams plan for. Client-facing and value-generating roles remain intact; transactional work is compressing.
For HR, the mandate is two-fold: accelerate workforce planning for automation and build reskilling paths that keep people employable inside your org-or employable elsewhere with dignity.
Immediate actions if your org is moving in this direction
- Run a role-task audit: List tasks by frequency and rules-based complexity. Flag anything that is predictable, repetitive, and system-integrated-those are near-term automation candidates.
- Freeze backfills where automation is viable: Avoid hiring into roles you expect to compress within 6-12 months.
- Create adjacent-role bridges: Map impacted roles to internal openings in client service, implementation, QA, sales support, and product ops.
- Stand up a transition program: Resume workshops, interview coaching, curated job leads, and clear severance/benefit FAQs.
- Check WARN compliance early: Confirm thresholds, notices, and timelines with counsel and operations.
Workforce planning moves for the next 12 months
- Redesign job architectures: Shift from role-based to skill-based models; align to workflows that combine people + automation.
- Set automation guardrails: Define approval, data privacy, audit logs, and escalation paths for AI-assisted processes.
- Measure impact: Track cycle time, error rates, CSAT, cost per transaction, and internal mobility outcomes for displaced employees.
- Invest in enablement: Train managers to lead mixed teams (humans + AI tools) and to evaluate outcomes, not keystrokes.
Communication and care for impacted employees
- Be specific: Name the functions changing, the timeline, and why. Ambiguity creates anxiety.
- Offer real options: Internal transfers with fast-track interviews, reskilling cohorts, and external placement support.
- Explain the tech shift: Show which tasks are automated, what new work remains, and how people can participate.
Hiring continues in client-facing and tech roles
Even with back-office reductions, Paycom says recruiting continues in sales, software, implementation, and service. That pattern is consistent across companies adopting automation: less transactional work, more roles tied to revenue, client experience, and the systems that enable both.
Useful resources
Upskilling paths for HR and operations teams
If you're building internal academies or curated learning paths, prioritize AI-assisted workflows (process automation, data analysis, content ops) and human differentiators (client success, consultative support, implementation). For structured options by job function, see Complete AI Training: Courses by job.
Bottom line for HR: Treat automation as a capacity shift, not just a cost cut. Re-scope work, move people to value, and give clear paths for those who exit. That's how you protect culture while the tech stack changes.
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