Intuit To Lay Off 10% Workforce Amid Shift To AI-powered Solutions
The layoff will impact approximately 1,800 employees
Intuit on Wednesday said that it will lay off approximately 1,800 employees, or 10 per cent of its workforce, as part of a strategic shift to focus on its AI-powered tax preparation software and other financial products.
The layoff includes the closure of sites in Edmonton, Canada and Boise, Idaho. Despite these layoffs, the company plans to rehire an equal number of employees, primarily in engineering, product and customer-facing roles.
The decision also involves eliminating 300 positions to streamline operations and consolidating 80 technology roles to key locations such as Atlanta, Bengaluru and Tel Aviv. This restructuring will cost Intuit between USD 250 million and USD 260 million, with the majority of these charges expected in the fourth quarter, according to a regulatory filing.
Intuit has heavily invested in generative AI to enhance its accounting and tax preparation tools for small and medium businesses. The company plans to continue this investment while expanding into new markets, including Canada, the United Kingdom and Australia.
CEO Sasan Goodarzi conveyed that Intuit expects to see growth in headcount in fiscal 2025 and beyond, following this period of restructuring.
(Inputs from Reuters)
