TurboTax parent company Intuit said on Wednesday it would lay off about 1,800 employees, or 10% of its workforce, to focus on its AI-powered tax preparation software and other financial products.
The company has invested heavily over the past few years in providing AI-powered accounting and tax preparation tools to small and medium-sized businesses, but it plans to close two locations in Edmonton, Canada and Boise, Idaho.
Intuit plans to hire 1,800 new employees, mostly in engineering, product and customer-facing areas, CEO Sasan Gudarji said. Note To employees.
The company, whose shares fell 3.6 percent, did not disclose a timeline for the new hires.
“We believe making these changes from a position of strength is the right move, and we see the gradual hiring plans following the cuts as a sign that Intuit is bullish on its growth prospects, particularly for small businesses and Credit Karma,” said Kirk Mattern, an analyst at Evercore ISI.
Intuit, which also makes online accounting software QuickBooks, said it plans to increase investments in generative AI and expand into new markets such as Canada, the UK and Australia.
The memo added that 300 positions would be eliminated to streamline operations and that 80 technology jobs would be consolidated into locations including Atlanta, Bangalore and Tel Aviv as part of the layoffs plan.
The layoffs will cost Intuit a loss of $250 million to $260 million, with the bulk of that coming in the fourth quarter, the company told regulators. Filing.
Goudarge said Intuit expects to continue growing its workforce beyond fiscal 2025.
Intuit reported increased third-quarter revenue in May and raised its full-year forecast, anticipating increased demand for its AI-integrated products.
