Intuit layoffs: 1,800 jobs cut, but company says it will expand workforce this year

Intuit will tell about 1,800 of its global employees (10% of its workforce) that they are leaving the company. But leadership says the move is not to reduce costs.

Sasan Goodarzi, CEO of the Fortune 500 company that offers products such as QuickBooks, Credit Karma and TurboTax, wrote an internal email to employees, which was Fortuneannouncing the “very difficult decisions my leadership team and I have made.”

Goodarzi explained that Intuit’s transformation, including the layoff of its 1,800 employees, is part of its strategy to increase investments in priority AI and generative AI focus areas, such as its GenAI-powered financial assistant called Intuit Assist, and to reimagine its products from traditional workflows to AI-native experiences. The strategy also focuses on money movement, expanding the mid-market for small businesses, and growing internationally.

“We don’t layoff to cut costs, and that still holds true in this case,” Goodarzi wrote. Intuit plans to hire about 1,800 new people with strategic functional skills, primarily in engineering, product and customer-facing roles such as sales, customer success and marketing, and expects to grow its total headcount in fiscal 2025, which begins Aug. 1.

Of the employees leaving Intuit, 1,050 are not meeting expectations based on a formal performance management process. The company believes they will be “more successful outside of Intuit,” Goodarzi writes. Additionally, Intuit is reducing the number of executives (directors, SVPs and EVPs) by about 10%, expanding certain leadership roles and responsibilities.

Intuit is also consolidating 80 engineering positions in locations where it is growing technology teams, including Atlanta, Bangalore, New York, Tel Aviv and Toronto. The company is closing two locations in Edmonton and Boise with more than 250 employees, with a certain number of employees moving to other locations within Intuit or leaving the company. Intuit is also cutting more than 300 positions across the company to “streamline work and reallocate resources to key growth areas,” the email said.

All departing U.S. employees will receive a package that includes a minimum of 16 weeks of pay, plus two additional weeks for each year of service. They will have 60 days before they leave the company, with a final day of Sept. 9. Employees outside the U.S. will receive similar support, subject to local requirements.

“This timing ensures that anyone who leaves can reach the July vesting date for restricted stock units and the July 31 date for annual IPI bonuses,” Goodarzi wrote. Those who are not in an IPI plan can reach the July or Q4 date. It’s the most generous severance package Intuit has ever offered, the company said.

“Intuit is in a strong position,” Goodarzi said. The company earned $14.4 billion in revenue in fiscal 2023, rising 24 spots on the Fortune 500. For the period ended April 30, Intuit reported revenue of $6.7 billion, up 12%.

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