Intuit's Market Strategy: Layoff for Growth and Investment in AI Technology

Intuit , the company behind TurboTax , announced a significant decision on Wednesday - they are planning to lay off around 1,800 employees , which accounts for about 10 % of their workforce . This move is part of their strategy to shift their focus towards their AI - powered tax preparation software and other financial products . The company has been heavily investing in generative AI - powered tools for accounting and tax preparation for small and medium businesses , and this restructuring will involve closing down two of their sites in Edmonton , Canada , and Boise , Idaho.

CEO Sasan Goodarzi mentioned in a note to employees that while 1,800 people will be let go , the company plans to rehire new talent primarily in engineering , product , and customer - facing roles . However , no specific timeline for this fresh hiring was provided . Additionally , Intuit is looking to expand its operations into new markets such as Canada , the United Kingdom , and Australia , while also increasing investments in generative AI technology.

As part of the layoff plan , 300 roles are being eliminated to streamline work processes , and 80 technology roles will be consolidated to various sites including Atlanta , Bengaluru , and Tel Aviv . The restructuring process is estimated to cost Intuit between 50 million to 60 million , with a significant portion of the charge expected to be incurred in the fourth quarter . Despite the current layoffs , Goodarzi expressed optimism about growing headcount in fiscal 2025 and beyond.

In a regulatory filing , Intuit stated that they expect to see a growth in demand for their AI - integrated products , which was reflected in their third - quarter revenue report earlier in May . The company reported an increase in revenue and raised their annual forecast , indicating a positive outlook for the future .

Overall , the decision to lay off employees while focusing on AI technology and expanding into new markets reflects Intuit 's commitment to innovation and adaptation in the ever - evolving financial technology sector . It remains to be seen how these changes will impact the company 's growth and market presence in the coming years .

In conclusion , Intuit 's restructuring plans and emphasis on AI technology signify a shift in their business strategy towards modernization and efficiency , in line with the evolving needs of the financial industry.