Time: 2024-07-11
Intuit , the company behind financial software platforms like QuickBooks and TurboTax , has made the decision to cut 1,800 jobs , which accounts for 10 % of its workforce . The layoffs are part of a strategic move to focus on products driven by Artificial intelligence . Intuit CEO Sasan Goodarzi emphasized that the company plans to replace the laid - off employees with individuals who specialize in AI and sales as it transitions towards AI - focused products . The Mountain View , Calif.-based company will be closing two worksites and hiring new employees for AI - related positions.
In a filing with the Securities and Exchange Commission , Intuit stated that it expects to incur up to 60 million in layoff costs , along with additional charges related to the closure of worksites in Boise , Idaho , and Edmonton , Canada . Despite the layoffs , Intuit remains committed to maintaining its core customer base of small and medium - sized businesses . Additionally , Intuit 's recent revenue growth highlights the company 's financial strength , with 4.4 billion earned in fiscal year 2023.
Sasan Goodarzi , the CEO of Intuit , clarified that the decision to lay off employees is not solely a cost - cutting measure . Instead , it is part of the company 's transformation journey , which includes increasing investments in AI and generative AI technologies . Goodarzi outlined Intuit 's focus on developing AI - powered financial products and expanding its presence in the mid - market segment and international markets . The company plans to hire approximately 1,800 new employees with specialized skill sets to support these initiatives.
Of the employees being laid off , 1,050 were identified as not meeting performance expectations and will be provided with a generous severance package . Intuit is also restructuring its executive team and consolidating tech roles in growing technology hubs . Employees who are leaving the company will receive a minimum of 16 weeks of pay , plus additional compensation based on years of service . The severance package is described as the most generous ever offered by Intuit.
Intuit 's strong financial performance and revenue growth in recent years position the company well for future success . The decision to shift towards AI - driven products reflects Intuit 's commitment to innovation and adapting to evolving market trends . As Intuit navigates this period of change , it remains focused on serving its customers and driving growth through technology and product development.
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