Hello HR Tech enthusiasts,

Quiet week in HR Tech, huh?

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Grab a cup of coffee (or maybe an early Easter candy stash) and settle in—here are the five stories that grabbed our attention in Q1.

1. Deel Is in the News for... A Lot of Reasons

What’s Happening:

• Until Monday, this section was going to be about Deel's recent secondary funding (delaying an IPO by letting early employees and investors cash out) and acquisition of Safeguard Global’s payroll division, cementing Deel’s pivot from scrappy upstart to major industry consolidator.
• But then, on Monday, an absolutely wild story broke: Rippling sued Deel, alleging a long-running scheme of corporate espionage that reads more like a spy novel than an HR tech rivalry.
• According to Rippling’s lawsuit, an alleged “mole” was found locked in a bathroom hurriedly flushing his phone down the toilet, and the father of Deel’s CEO is also implicated in orchestrating the alleged clandestine operation. 

Why It Matters:
Look, it’s one thing to compete aggressively in a heated market—global payroll, HRIS and EOR services are more popular than ever, and Deel has famously grown at breakneck speed.

But this lawsuit has turned heads far beyond the usual HR tech sphere, with accusations of orchestrated data theft and cloak-and-dagger antics that are equal parts shocking and bizarre.

The fundraising and Safeguard Global announcements, significant as they are, have been eclipsed by legal drama that could have major reputational and operational repercussions.

For now, the story is unfolding, and we can only say this with certainty: flushing a phone down a toilet generally doesn’t scream “everything’s cool.” Stay tuned; this saga is far from over.

2. Layoffs at Justworks, Dayforce, and Workday

What’s Happening:

• Justworks announced a round of layoffs, with CEO Mike Seckler citing the need to refocus on “mission-critical” initiatives as the economy remains volatile.
• Dayforce let go of about 5% of its global workforce, aiming to streamline and drive “greater efficiency.”
• Workday also trimmed staff, mentioning that market conditions remain unpredictable, even as they continue to invest in strategic areas like AI.

Why It Matters:
Don’t expect a quick rebound to the hyper-growth era of 2021–22. With high interest rates, an uneven economic outlook, and IPO hopes on hold, resources are getting tight—and execution is everything.

Leadership teams that can channel existing budgets wisely, place the right strategic bets, and instill a culture of disciplined focus will likely come out on top.

In other words, it’s no longer about who can hire the most engineers or launch flashy side projects, but who can drive meaningful results with fewer resources.

3. Gallagher Acquires Woodruff Sawyer

What’s Happening:

• Gallagher, the ever-acquisitive benefits brokerage powerhouse, reached an agreement to acquire Woodruff Sawyer, a venerable West Coast broker with a strong reputation for risk management expertise.
• This follows a string of Gallagher deals—most recently iBTR and OperationsInc—further consolidating the broker landscape.

Why It Matters:
Let’s be honest: the Gallagher M&A team might be the hardest-working folks in HR and benefits right now. Each new acquisition broadens their reach and bundling options—great news if you prefer one-stop shopping.

On the flip side, smaller independents who pride themselves on white-glove service and deep local relationships are facing competition from ever-larger and more well-resourced peers. 

4. Co-Advantage and PrimePay Merge: Another PEO Buys an HRIS

What’s Happening:

• Co-Advantage, a national PEO vendor, and PrimePay, a payroll and HR tech provider known for advanced position management tools, are joining forces.
• This mirrors other big moves—like TriNet acquiring Zenefits—where PEOs are grabbing full-fledged HRIS solutions. It comes after the departure of Prism (the popular, white-labeled HRIS) to competitor PEO, Vensure.

Why It Matters:
PEOs once leaned heavily on third-party tech, but the landscape is shifting. With Prism snatched by a rival, Co-Advantage secures its own technology platform in PrimePay, avoiding dependency on external systems. This trend highlights the industry’s push toward vertical integration: combining a robust HRIS under the same roof as outsourced HR services. 

(Check out our deep dive for more on why this matters.)

5. Paychex Launches Funding Solutions, Takes on Accounts Payable

What’s Happening:

• Paychex rolled out Funding Solutions, offering small-business financing—a big leap beyond standard payroll, HR, and insurance.
• Essentially, companies can tap into their own accounts payable cycles to secure upfront cash. Paychex handles the behind-the-scenes mechanics, letting employers pay vendors while delaying some out-of-pocket expenses.

Why It Matters:
We’ve talked a lot about the ongoing convergence of HR and finance, but this is next-level. By enabling businesses to pull cash forward from their AP cycle, Paychex is stepping closer to a mini-banking model—think short-term credit lines, courtesy of your payroll provider.

For small- and mid-sized companies, bridging the cash-flow gap between pay runs and incoming revenue is a perpetual challenge. If Paychex can simplify that process within a familiar HR interface, they might carve out a valuable niche. It’s also a sign that the “HCM vs. finance software” distinction may vanish sooner than you’d expect.

Wrapping Up

Layoffs, corporate espionage, mega-funding, M&A left and right, and even some creative lending solutions—March 2025 in HR tech has kept us on our toes. With budgets getting tighter, successful companies will be those that execute smartly, invest in solutions that cut overhead, and ensure they can adapt to a world where HR and finance are increasingly intertwined.

Buckle up: the lines between payroll, PEO services, benefits, and banking are blurring further each day. If you’re an employer looking to simplify your stack (and maybe snag a line of credit while you’re at it), the coming months could get interesting.

Stay tuned, stay curious, and we’ll see you in April!