Oklahoma City's largest technology company is cutting approximately 500 jobs across multiple departments, with many positions expected to be replaced by artificial intelligence.
Paycom announced the layoffs on Wednesday morning and says terminations "took effect immediately."
Reductions will affect "only non-client-facing roles," which have been automated by AI, the company said in a statement.
"The company continues to actively recruit and hire across sales, software, implementation and service roles," the company said in a release. "The updates impact only non-client-facing roles that have been automated, while client-facing roles remain focused on the high-touch, relational service for which Paycom is known."
Paycom is responsible for management and payroll services for more than 30,000 organizations across Oklahoma and the world. In 2024, the company reported $1.88 billion in revenue.
The company has seen significant and sustained growth since it was founded in 1998, including during the pandemic when many businesses struggled.
Wednesday's layoffs were concentrated at Paycom's Oklahoma City headquarters at 7501 W Memorial. The company also has an operations center in Grapevine, Texas and had more than 7,000 employees at the beginning of 2025, according to SEC filings.
The company says it will offer transition assistance, including severance packages, to employees who were laid off in the cuts.
The layoffs come amid a period of record-low unemployment in Oklahoma City, with the unemployment rate below 4% for four consecutive years. The national unemployment rate was 4.3% as of August.
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