Intuit to Lay Off 1,800, Close Facilities for AI Investments

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Intuit has announced plans to lay off 1,800 employees, representing 10% of its workforce, and close two locations as part of a broader restructuring strategy aimed at boosting the company’s investments in artificial intelligence. The financial technology firm disclosed the move in a filing with the Securities and Exchange Commission on Wednesday.

The anticipated cost of the restructuring is projected to be in the range of $250 million to $260 million. These charges encompass severance packages, share-based compensation, and site closure expenses, and will mostly impact the company’s current quarter ending July 31.

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In response to these changes, Intuit will shut down its facilities in Boise, Idaho, and Edmonton, Canada, while simultaneously concentrating its efforts on expanding technology teams and capabilities in selected “strategic locations.” Additionally, the restructuring will involve a 10% reduction in the executive team, with some roles and responsibilities being expanded.

Intuit, known for its tax-preparation software TurboTax, aims to finalize these measures by the end of its fiscal first quarter, which concludes on October 31. On the news, the company’s shares saw a 3.9% drop in midday trading.

Chief Executive Sasan Goodarzi, in an email to employees on Wednesday, emphasized the necessity of accelerating innovation and investments in the sectors deemed crucial for the company’s future success. Intuit’s regulatory filing indicated plans to hire nearly the same number of employees in fiscal 2025, targeting key areas of growth. Goodarzi highlighted the company’s intention to ramp up investments in data and AI.

This announcement follows Intuit’s late-May report of stronger-than-expected fiscal third-quarter results, with a 12% increase in revenue and an elevated full-year outlook. Goodarzi mentioned that part of these investments would focus on connecting customers to experts via AI-driven channels, enhancing financial solutions, and speeding up international growth.

He pointed to the introduction of GenAI as a significant milestone, stating that it has allowed Intuit to deliver more compelling customer experiences, boosted monetization potential, and improved work efficiency within the company. “But it’s just the beginning of the AI revolution,” Goodarzi remarked.