Intuit, the company behind QuickBooks, Credit Karma, and TurboTax, is laying off 1,800 employees, which is about 10% of its global workforce. CEO Sasan Goodarzi emphasized that these layoffs are not intended to cut costs but to realign the company’s focus on AI and generative AI technologies.
The layoffs are part of Intuit’s broader strategy to invest in priority areas, including its GenAI-powered financial assistant, Intuit Assist. The company aims to transform its products from traditional workflows to AI-native experiences. Other strategic focuses include enhancing money movement, expanding mid-market offerings for small businesses, and growing internationally.
Despite the layoffs, Intuit plans to hire about the same number of people – 1,800 new employees in engineering, product, and customer-facing roles such as sales, customer success, and marketing. This hiring spree is expected to result in overall headcount growth in fiscal year 2025, starting August 1.
Out of the 1,800 employees being laid off, the company says that 1,050 are not meeting performance expectations. These employees are believed to be better suited for opportunities outside of Intuit. Additionally, the company is reducing its number of executives by approximately 10%, consolidating roles to expand executive responsibilities.
Intuit is consolidating 80 tech roles to key growth locations, including Atlanta, Bangalore, New York, Tel Aviv, and Toronto. Consequently, the company is closing its Edmonton and Boise sites, affecting over 250 employees. Some will relocate, while others will leave the company. Intuit is also eliminating more than 300 roles across various departments to streamline operations and reallocate resources towards growth areas.
Departing U.S. employees will receive a generous severance package, including a minimum of 16 weeks of pay, plus two additional weeks for every year of service. They will have 60 days before their last working day on September 9, allowing them to reach vesting dates for restricted stock units and eligibility for annual bonuses. Employees outside the U.S. will receive similar support in accordance with local requirements.
Intuit is financially strong, with a reported revenue of $14.4 billion in fiscal year 2023, a 12% increase to $6.7 billion for the period ending April 30. The company moved up 24 spots on the Fortune 500 list, reflecting its robust market position.
Intuit’s layoffs, though significant, are part of a strategic shift towards embracing AI technologies and enhancing product offerings. The company’s future growth plans include significant investments in AI, mid-market expansion, and international growth, aiming to stay ahead in a rapidly evolving market.
