Financial software company Intuit has announced it will lay off approximately 1,800 employees as part of a reorganisation plan centred on increased use of artificial intelligence (AI).
The layoffs, which represent about 10% of the workforce, are a strategic move to streamline operations and reallocate resources towards AI integration within its products and services.
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In a communication to staff, Intuit CEO Sasan Goodarzi stated that more than 1,000 of the job cuts are due to employees not meeting the company’s heightened expectations.
An additional 300 roles are being eliminated to streamline work and shift resources to key growth areas.
Intuit is also consolidating 80 technology positions to strategic locations, including Atlanta, Bangalore, New York, Tel Aviv, and Toronto.
The company’s strategy focuses on aligning resources with product and technology teams responsible for discrete technology capabilities and solving critical customer problems.
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By GlobalDataIntuit, the company behind QuickBooks and TurboTax, will close its Edmonton and Boise sites, affecting more than 250 employees, some of whom may relocate within the company while others may exit.
To increase decision-making speed, Intuit is also reducing its executive count (director level and above) by about 10%, while expanding the roles and responsibilities of certain executives.
Intuit plans to reinvest in necessary skills and capabilities, with intentions to hire around 1,800 new employees, primarily in engineering, product, and customer-facing roles such as sales, customer success, and marketing by fiscal 2025.
“We do not do layoffs to cut costs, and that remains true in this case. The changes we are making today enable us to allocate additional investments to our most critical areas to support our customers and drive growth,” Goodarzi said.
According to a regulatory filing, the Intuit reorganisation is expected to incur charges between $250m and $260m, predominantly in the fiscal fourth quarter ending 31 July 2024.
