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Intuit to Lay Off 1,800 Employees Amid AI-Focused Strategy Shift
Intuit Inc. is set to cut 1,800 jobs, representing approximately 10% of its global workforce, to enhance its focus on artificial intelligence-driven product development. In a letter to employees, Chief Executive Officer Sasan Goodarzi clarified that this move is not aimed at reducing costs but is intended to reallocate resources toward more critical areas to spur growth and customer support.
Goodarzi noted that more than 1,000 of the employees being let go are those who "are not meeting expectations." Additionally, the company will reduce its executive team by about 10% to improve decision-making speed. Despite the layoffs, Intuit plans to rehire an equivalent number of employees, prioritizing positions in engineering, product, and sales divisions.
This move follows a broader trend in the tech industry where major corporations, including Microsoft Corp., Google, Amazon.com Inc., and Salesforce Inc., have been streamlining their workforces since early 2023. Intuit, recognizable for its TurboTax and QuickBooks software, had thus far managed to avoid large-scale firings.
Goodarzi underlined Intuit's sharpened focus on generative AI and support for its core customer base of small- and medium-sized businesses. Intuit is also planning to enhance its fintech capabilities, particularly for its Credit Karma business, which aids users in loan aggregation and cash flow management.
Kirk Materne, an analyst at Evercore ISI, interpreted the company's post-layoff hiring plans as an indication of Intuit's optimism about its growth potential, especially in the realms of small business support and Credit Karma.
In connection with the workforce reduction, Intuit will close offices in Edmonton, Canada, and Boise, Idaho, while consolidating some tech roles into larger hubs. The company also intends to accelerate its growth in markets such as Canada, the UK, and Australia.
The company disclosed in a filing with the US Securities and Exchange Commission that the job cuts would incur costs between $250 million and $260 million, primarily related to severance packages.
