Intuit to Cut 1,800 Jobs, Focus on AI and Key Rehiring

Intuit, the parent company of TurboTax, has announced plans to cut approximately 1,800 employees, representing about 10% of its global workforce. The layoffs are part of a strategic shift to reinvest capital in critical areas, particularly in enhancing its AI and generative AI capabilities. The company will close two sites in Edmonton, Canada, and Boise, Idaho, and intends to rehire the same number of employees, focusing on roles in engineering, product development, and customer-facing positions.

CEO Sasan Goodarzi stated that the layoffs are not aimed at reducing costs but rather at reallocating resources to priority focus areas, including its AI-powered financial assistant, Intuit Assist. The restructuring will cost the company between $250 million and $260 million, with significant expenses expected in the fourth quarter. Intuit is also reducing its executive count by about 10% and consolidating 80 tech roles to growing technology hubs in cities like Atlanta, Bangalore, New York, Tel Aviv, and Toronto. Departing U.S. employees will receive a severance package that includes a minimum of 16 weeks of pay, plus additional weeks based on years of service.