Intuit, the tax preparation and financial software company behind QuickBooks and TurboTax, has announced a reorganization plan that focuses on artificial intelligence incorporation into its products and services.
As part of the plan, Intuit is laying off about 10% of its workforce, which means 1,800 employees will be affected.
The big picture: Intuit is expected to hire at least as many employees in fiscal year 2025, as it accelerates its focus on integrating AI into its products and services.
- CEO Sasan Goodarzi explained in an email to employees that more than 1,000 of the layoffs were employees who were not meeting the company’s elevated expectations, and an additional 300 jobs are being eliminated to streamline work and reallocate resources.
- Intuit will close offices in Boise, Idaho and Edmonton in Alberta, Canada, where more than 250 employees work, but some workers will transfer to new locations.
- Goodarzi indicated that companies that are not ready to take advantage of the AI revolution will fall behind over time, and may no longer exist.
- Employees who were laid off will receive a minimum of 16 weeks of pay, with two additional weeks for every year of service, and at least six months of health insurance coverage.
- Intuit expects reorganization charges of between $250 million and $260 million during its fiscal fourth quarter ending July 31.
