Intuit lays off 1,800 employees amid AI-focused reorganization
California-based software giant Intuit, renowned for TurboTax, Credit Karma, and Mailchimp, has revealed plans to lay off 1,800 employees. This strategic move is part of a reorganization plan aimed at preparing for the "AI revolution." CEO Sasan Goodarzi stated that the company is in a "position of strength" to leverage AI-driven innovation but needs to "accelerate our innovation and investments in the areas that are most important to our future success."
Layoffs to streamline operations, not for cost-cutting
The layoffs, representing 10% of Intuit's workforce, will primarily take place in California, with 384 employees in Mountain View and 215 in San Diego being affected. Goodarzi clarified that the firings are not aimed at cost-cutting but at streamlining operations, and reallocating resources to key growth areas. He further claimed that 1,050 of the workers being let go were not meeting performance expectations.
Intuit plans to hire 1,800 new employees
Despite the layoffs, Intuit intends to hire 1,800 new employees primarily in product, engineering, and customer-facing roles like sales, customer success, and marketing. The firm anticipates its overall headcount to grow in the fiscal year 2025 and beyond. Laid-off workers will have their last day on September 9, and will get a severance package that includes a minimum of 16 weeks of pay, in addition to two extra weeks for every year of service.
Intuit consolidates roles, plans site closures
Intuit is also consolidating 80 technology roles to sites where it is expanding its teams and capabilities, including Atlanta, Bengaluru, New York, Tel Aviv, and Toronto. The layoffs will cost the firm between $250-260 million with a significant portion of the charge tipped to be incurred in the fourth quarter. The company will close two of its sites in Edmonton, Canada, and Boise, Idaho as part of this reorganization.
