Intuit, the powerhouse behind popular tools like QuickBooks and TurboTax, is set to undergo a significant transformation, impacting approximately 1,800 of its employees globally. This move, revealed by CEO Sasan Goodarzi in an internal communication, marks a pivotal shift aimed not at cutting costs but at steering the company towards a future defined by innovation in artificial intelligence (AI) and other critical growth sectors.
Embracing AI and Future-Ready Solutions
Goodarzi articulated that these layoffs are integral to Intuit’s broader strategy of ramping up investments in AI and generative AI. These technologies will drive initiatives such as the AI-powered financial assistant, Intuit Assist, and enhance capabilities in money management, mid-market expansions, and international market penetration.
“We do not undertake layoffs lightly, and our focus remains steadfast on strategic evolution,” Goodarzi affirmed, highlighting plans to recruit approximately 1,800 new talents skilled in engineering, product development, and customer engagement. The company anticipates an overall increase in its workforce starting from the fiscal year 2025.
Performance Evaluation and Executive Realignment
Addressing performance concerns, Goodarzi disclosed that a significant portion of those affected—1,050 employees—did not meet performance expectations outlined through formal evaluations. Intuit believes these individuals may find better opportunities outside the organization. Additionally, the company will reduce its executive ranks by about 10%, concurrently expanding key leadership roles to bolster strategic priorities.
Intuit plans to consolidate 80 technology roles to key hubs like Atlanta, Bangalore, New York, Tel Aviv, and Toronto, optimizing its operational efficiency in these burgeoning tech centers. As part of this consolidation, Intuit will shutter offices in Edmonton and Boise, impacting over 250 employees. Efforts will be made to facilitate relocations for some affected staff members, while others will transition out with support tailored to local requirements.
Streamlining operations, Intuit is eliminating over 300 roles across various departments to reallocate resources towards vital growth initiatives. Departing U.S.-based employees will receive a comprehensive severance package, ensuring financial stability with a minimum of 16 weeks’ pay plus additional compensation based on tenure. Similar provisions will extend to international team members affected by these changes.
Underlining the company’s commitment to its workforce, Goodarzi emphasized that departing employees will retain benefits through critical dates like July stock vesting and annual bonus eligibility, embodying Intuit’s ethos of compassionate transition during transformative phases.
Despite these structural adjustments, Intuit remains financially robust, reporting $14.4 billion in revenue for fiscal year 2023 and a noteworthy climb in Fortune 500 rankings. Goodarzi reiterated the company’s dedication to accelerating innovation and investment, particularly in AI-driven solutions essential for future competitiveness and customer-centric excellence.
Future Outlook: Advancing AI-Powered Expertise
Looking ahead, Intuit envisions itself as a leading AI-driven platform catering to mid-market clients, delivering tailored solutions amidst evolving business complexities. The company’s ongoing expansion in mid-market segments since 2019 underscores its strategic direction, with current moves poised to amplify these efforts.
Amidst its transformation, Intuit confronts regulatory scrutiny, notably from the FTC concerning product claims related to tax filing services. Concurrently, the IRS’s initiatives to counter service fees through innovative programs reflect broader industry dynamics and regulatory interactions shaping Intuit’s operational environment.
