Intuit Layoffs: Shifting Focus to AI with Major Workforce Restructuring

Intuit has announced plans to lay off approximately 1,800 employees, or 10% of its workforce, as it shifts its focus towards artificial intelligence （AI） projects. The company aims to hire new talent in engineering, product management, and customer-facing roles to advance its AI initiatives.

Points

• Intuit to lay off 1,800 employees as part of a strategic shift towards AI.
• CEO Sasan Goodarzi emphasizes the layoffs are not cost-cutting measures.
• New hires will focus on engineering, product management, and AI.
• The reorganization will cost Intuit approximately $250-$260 million.
• Severance packages and support provided to laid-off employees.

Intuit, the financial software giant known for products like QuickBooks and TurboTax, has announced plans to lay off approximately 1,800 employees, or 10% of its workforce. This move is part of a strategic reorganization aimed at advancing the company’s artificial intelligence （AI） initiatives.

CEO Sasan Goodarzi emphasized that the layoffs are not cost-cutting measures. Instead, they reflect a pivot towards harnessing AI technology to drive future growth. Goodarzi stated, “We do not do layoffs to cut costs, and that remains true in this case.” The company plans to recruit new talent, particularly in engineering, product management, and customer-facing roles, to further its AI endeavors.

This restructuring will cost Intuit between $250 million and $260 million, as noted in regulatory filings. Despite the substantial investment, the company believes that focusing on AI will yield significant long-term benefits. The stock market reaction was mildly negative, with Intuit’s stock dipping by approximately 3.6% following the announcement.

In a message to the affected employees, Goodarzi acknowledged that about 1,050 employees were informed that their performance did not meet expectations. Another 300 positions were eliminated due to the strategic

reorganization. The company is providing those laid off with severance packages, 60 days’ notice, career transition services, and six months of continued healthcare benefits.

Explanation

• Strategic Shift to AI: Intuit’s decision to lay off a significant portion of its workforce is part of a broader strategy to focus on artificial intelligence. By investing in AI, Intuit aims to enhance its product offerings and remain competitive in the evolving tech landscape.
• Reorganization Costs: The reorganization will incur costs between $250 million and $260 million. However, Intuit views this as a necessary investment for future growth and innovation.
• Support for Laid-off Employees: Intuit is committed to supporting its laid-off employees through severance packages, career transition services, and continued healthcare benefits, demonstrating a commitment to their well-being even amidst restructuring.