Intuit, the company behind QuickBooks and TurboTax, announced on Wednesday an AI-focused reorganization plan that includes laying off about 10% of its workforce. The company is letting go of 1,800 employees but expects to hire at least that many in fiscal 2025 as it shifts its focus toward incorporating artificial intelligence into its products and services. CEO Sasan Goodarzi stated that more than 1,000 of the layoffs were due to employees not meeting elevated performance expectations.
In addition to the layoffs, Intuit is eliminating 300 positions to streamline operations and reallocate resources toward key growth areas. The company will also close offices in Boise, Idaho, and Edmonton, Alberta, affecting more than 250 employees, some of whom will transfer to new locations. Goodarzi emphasized the importance of adapting to the AI revolution, stating that companies not prepared for this technological shift will fall behind and eventually disappear.
Intuit’s severance package for U.S. employees includes a minimum of 16 weeks of pay, additional weeks based on years of service, and at least six months of health insurance coverage. The reorganization plan is expected to incur charges between $250 million and $260 million, primarily in the fiscal fourth quarter ending July 31. Following the announcement, Intuit’s shares fell 3.6% to $626.29 per share.
