Tax preparation and financial software company Intuit on Wednesday announced an AI-focused restructuring plan that includes laying off about 10% of its workforce.
WASHINGTON — Tax preparation and financial software company Intuit on Wednesday announced an AI-focused restructuring plan that includes laying off about 10% of its workforce.
The company, which owns QuickBooks and TurboTax, said it would lay off 1,800 employees but expects to hire at least that many in fiscal 2025 as it accelerates its focus on incorporating artificial intelligence into its products and services.
In an email to employees, CEO Sasan Gudarji said more than 1,000 of the laid-off employees were those who failed to meet the company's high expectations.
An additional 300 positions will be eliminated “to streamline operations and reallocate resources to key growth areas,” according to the email.
Mountain View, California-based Intuit is also closing offices in Boise, Idaho, and Edmonton, Alberta, Canada, which employ more than 250 people, some of whom will be relocated to new locations, the company said.
“The age of AI is one of the most significant technological transitions of our lifetimes,” Goodarzi began his email to employees. “Companies that are not prepared to take advantage of this AI revolution will fall behind and eventually cease to exist.”
As for severance, Intuit said all laid-off U.S. employees will receive a minimum of 16 weeks' pay, plus an extra two weeks' pay for each year of service, and “at least” six months' health insurance. U.S. employees were given 60 days' notice before the layoffs, with the last day being September 9.
Intuit estimated in regulatory filings that its restructuring plan would result in charges of $250 million to $260 million, most of which would occur in the fourth quarter ended July 31.
Intuit shares fell 3.6% to $626.29 per share in morning trading.
