Intuit, the financial software giant known for products like QuickBooks and TurboTax, plans to lay off about 1,800 employees, or 10% of its workforce. The company aims to reorganize its operations to focus on artificial intelligence (AI) projects.
CEO Sasan Goodarzi emphasized that the layoffs are not cost-cutting measures but part of a strategic shift towards AI technologies. Intuit plans to recruit an equal number of new employees in engineering, product management, and customer support, with a focus on AI professionals.
Approximately 1,050 employees were informed that their performance did not meet expectations, while 300 positions were eliminated. Intuit is also reducing its executive ranks by about 10%.
Due to the restructuring, two office branches in Edmonton, Canada, and Boise, Idaho, will be shut down. The tech unit plans to move 80 tech positions to expand technology centers in Atlanta, Bangalore, New York, Tel Aviv, and Toronto.
Intuit estimates the restructuring will cost between $250 million and $260 million. This announcement led to a 3.6% decline in the company’s share value. Despite this, Goodarzi maintains that Intuit is in a strong financial position, having reported revenue of $14.4 billion in fiscal year 2023.
Departing U.S. employees will receive a severance package including a minimum of 16 weeks of pay, plus two additional weeks for each year of service. They will have 60 days before their final day at the company, which will be September 9.
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