Intuit, the financial technology company known for products like QuickBooks, Credit Karma, and TurboTax, is laying off approximately 1,800 employees globally, representing 10% of its workforce.
CEO Sasan Goodarzi emphasized that the decision is not driven by cost-cutting measures but rather is part of a strategic shift to focus on AI and generative AI.
What Areas Will Intuit Prioritize with Its AI Investments?
Intuit plans to accelerate investments in several key areas:
- AI and generative AI, including advancements like Intuit Assist, a GenAI-powered financial assistant
- Transitioning from traditional workflows to AI-centric user experiences
- Expanding into the mid-market segment for small businesses
- Enhancing its international presence
- Improving financial transaction capabilities
How Will the Layoffs and Restructuring Affect Intuit’s Workforce?
Despite the layoffs, Intuit intends to hire approximately 1,800 new employees with specialized skills in engineering, product development, and customer-facing roles like sales and marketing. The company expects its overall headcount to grow by the start of its 2025 fiscal year.
The restructuring will impact Intuit’s workforce in several ways:
- 1,050 employees deemed underperforming will be let go
- The executive team (directors and above) will be reduced by roughly 10%
- 80 technology roles will be consolidated to locations where tech teams are expanding
- Two sites in Edmonton and Boise, employing over 250 people, will be closed
- More than 300 positions will be eliminated to streamline operations and redirect resources
What Support Will Intuit Provide to Departing Employees?
Intuit is offering a comprehensive severance package to U.S. employees, which includes:
- A minimum of 16 weeks’ pay, plus two additional weeks per year of service
- A 60-day transition period, with a final departure date of September 9, 2024
- At least six months of health insurance coverage
- Access to career transition and job placement services
- Immigration support for affected employees on visas
Non-U.S. employees will receive similar support tailored to local requirements. The timing of the layoffs allows departing employees to reach key milestones, such as restricted stock unit vesting dates and annual bonus eligibility.
How Does Intuit’s Financial Performance Support This Strategic Shift?
Intuit’s strong financial position enables it to make this strategic pivot. In fiscal year 2023, the company generated $14.4 billion in revenue, climbing 24 spots in the Fortune 500 rankings. For the period ending April 30, 2024, Intuit reported a 12% increase in revenue, reaching $6.7 billion.
| Fiscal Year | Revenue | Fortune 500 Rank Change |
|---|---|---|
| 2023 | $14.4B | +24 |
| 2024 (as of April 30) | $6.7B (+12% YoY) | N/A |
What Does the Future Hold for Intuit?
CEO Sasan Goodarzi expressed excitement about Intuit’s future, stating, “With the strength of our people, culture, and mission, we are positioned to take advantage of this AI revolution and revolutionize our customers’ experiences to deliver undisputed benefits in ways that we could never imagine.
Today is day one.”As Intuit navigates this AI-driven transformation, the company remains committed to its mission of powering prosperity for consumers and businesses worldwide.
By focusing on innovation and strategic investments, Intuit aims to strengthen its leadership position and capitalize on the opportunities presented by the AI revolution.
