Intuit, the financial software giant behind QuickBooks and TurboTax, said it plans to lay off about 1,800 employees, or 10% of its global workforce, as part of a strategic shift to focus on AI and other priorities.
luck Reports Intuit CEO Sasan Gudarji announced a major restructuring of the company’s workforce that will affect 1,800 employees worldwide. The decision, reported in an internal email obtained by Fortune, is part of Intuit’s broader transformation strategy aimed at increasing investment in generative AI technologies.
Goodarge stressed that the job cuts were not a cost-cutting measure, but a strategic realignment of the company’s resources. “We do not reduce staff to cut costs, and that does not change in this case,” he said in an email. He outlined plans to hire about 1,800 new employees with specific skills in engineering, product development and customer relations, asserting that he expects the total employee headcount to grow in fiscal 2025.
The restructuring appears to be driven by Intuit’s ambitions to reinvent 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 transfer, mid-market expansion for small and medium-sized businesses, and international growth.
The restructuring also includes geographic consolidation, with Intuit closing two locations in Edmonton and Boise, affecting more than 250 employees. Some of those employees will transfer to other Intuit locations, while others will leave the company. Intuit will consolidate 80 technology jobs into growing tech hubs in Atlanta, Bangalore, New York, Tel Aviv, and Toronto. Additionally, more than 300 positions will be eliminated across the company to “streamline operations and reallocate resources to key growth areas,” according to Goodarzi’s email.
Intuit has committed to offering a generous severance package to departing employees. US employees will receive a minimum of 16 weeks’ pay, plus two weeks’ pay for each year of service. They have 60 days to leave, with the final day being September 9th. Employees outside the US will be offered similar support, taking into account local requirements. The company describes this as its most generous severance package to date.
Despite these big changes, Goodarzi maintains that Intuit is in a strong position. The company reported fiscal 2023 revenue of $14.4 billion, moving it up 24 spots on the Fortune 500 list. For the period ending April 30, Intuit reported revenue of $6.7 billion, up 12%.
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Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship.
