Intuit Announces Significant Layoffs to Focus on AI

Intuit, well-known for its popular financial software like TurboTax and QuickBooks, is planning to lay off approximately 3,000 employees, which amounts to about 17% of its workforce. This move is part of a strategic shift toward prioritizing AI integration into its products.

According to an internal memo from CEO Sasan Gudalji, these job cuts aim to streamline the organizational structure, enabling greater attention to AI initiatives. As per the company’s annual report, Intuit had around 18,200 employees as of July 2025, meaning about one in six employees will be affected by this decision.

Intuit didn’t provide immediate comments regarding the layoffs, nor did it address whether there would be any adjustments to executive pay in light of these cuts. In the previous fiscal year, Gudalji received total compensation of approximately $36.8 million, which included both cash and stock incentives.

This decision places Intuit alongside other major tech firms that have enacted substantial layoffs, often citing a need to shift resources to AI projects. Companies such as Amazon, Microsoft, and Meta have all trimmed their workforces, with the tech sector shedding more than 100,000 jobs in 2026 alone, according to Statista. If the current pace continues, this year could see even more significant job losses than in 2024 and 2025.

Interestingly, while the tech industry has reported strong revenues, bolstered by increased demand for AI solutions, Intuit has not fully shared in that upswing. Over the past year, its stock has consistently lagged behind the S&P 500 index. There’s growing apprehension about whether traditional software companies can maintain their competitive edge as AI reshapes software development and usage.

Nevertheless, Intuit’s financial health appears robust. In its fiscal second quarter, which concluded in January, the company reported revenues of $4.65 billion—up 17% year over year—with net income reaching $693 million, a notable increase of 48% compared to last year.

In related news, Cisco has announced it will lay off 4,000 employees, around 5% of its workforce, with a focus on enhancing investments in AI. This restructuring aligns with Cisco’s ongoing efforts to direct resources toward promising growth areas like AI chips and security technology, even as they reported record earnings.

There’s also a political dimension to these developments. Author Winton Hall has released a playbook outlining how some political factions aim to leverage fears about job displacement due to AI as a strategy ahead of midterm elections. The goals include convincing the public of inevitable mass job losses, rallying support for universal basic income, and addressing rising utility costs attributed to AI data centers.