Intuit, the financial software giant behind QuickBooks and TurboTax, has revealed plans to lay off approximately 1,800 employees worldwide, representing 10 percent of its workforce, as part of a strategic shift towards AI and other priority areas.
Fortune reports that Intuit CEO Sasan Goodarzi has announced a significant restructuring of the company’s workforce, affecting 1,800 employees globally. This decision, communicated through an internal email obtained by Fortune, is part of Intuit’s broader transformation strategy aimed at increasing investments in generative AI technologies.
Goodarzi emphasized that these layoffs are not cost-cutting measures but rather a strategic realignment of the company’s resources. “We do not do layoffs to cut costs, and that remains true in this case,” he stated in the email. The CEO outlined plans to hire approximately 1,800 new employees with specific skill sets in engineering, product development, and customer-facing roles, maintaining that the overall headcount is expected to grow in the 2025 fiscal year.
The restructuring appears to be driven by Intuit’s ambition to reimagine its products from traditional workflows to AI-native experiences. A key focus of this transformation is the development of Intuit Assist, a generative AI-powered financial assistant. The company is also prioritizing money movement, mid-market expansion for small businesses, and international growth.
The restructuring also involves geographical consolidation, with Intuit closing two sites in Edmonton and Boise, affecting over 250 employees. Some of these employees will be relocated to other Intuit sites, while others will leave the company. Intuit is consolidating 80 tech roles to growing technology hubs in Atlanta, Bangalore, New York, Tel Aviv, and Toronto. Furthermore, more than 300 roles across the company are being eliminated to “streamline work and reallocate resources toward key growth areas,” according to Goodarzi’s email.
Intuit has committed to providing generous severance packages for departing employees. U.S. employees will receive a minimum of 16 weeks of pay, plus two additional weeks for every year of service. They will have 60 days before leaving the company, with a last day of September 9. Similar support will be provided to employees outside the U.S., taking into account local requirements. The company has described this as the most generous severance package it has ever offered.
Despite these significant changes, Goodarzi maintains that “Intuit is in a position of strength.” The company reported revenue of $14.4 billion in its 2023 fiscal year, moving up 24 spots on the Fortune 500 list. For the period ending April 30, Intuit reported revenue of $6.7 billion, representing a 12 percent increase.
Read more at Fortune here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
