Intuit, the financial software giant known for TurboTax, QuickBooks, and Mailchimp, has announced a significant restructuring plan that will see 1,800 employees laid off, representing 10% of its global workforce. This move, revealed in an internal memo from CEO Sasan Goodarzi, is part of a broader strategy to reallocate resources towards artificial intelligence (AI) and other critical growth areas.

Intuit layoffs are not driven by cost-cutting measures but are aimed at intensifying investments in AI and generative AI technologies.The company plans to hire approximately 1,800 new employees with specialised skills in engineering, product development, and customer-facing roles such as sales and customer success.

This strategic shift is designed to enhance Intuit’s capabilities in developing AI-driven solutions, including its generative AI-powered financial assistant, Intuit Assist. The restructuring will also involve the closure of offices in Boise, Idaho, and Edmonton, Alberta, affecting over 250 employees.

Intuit’s Strategic Shift Towards AI and Future Growth

Intuit’s decision to lay off employees and simultaneously hire new talent underscores its commitment to staying at the forefront of AI innovation. The company’s CEO emphasised that the layoffs are part of a strategic initiative to focus on areas that are most critical to Intuit’s future success. This includes enhancing AI capabilities to transform traditional workflows into AI-native experiences, improving operational efficiency, and expanding into new markets.

The layoffs will impact employees across various locations, with a significant number of positions being consolidated to key technology hubs such as Atlanta, New York, Tel Aviv, and Toronto. Affected employees in the U.S. will receive a comprehensive severance package, including a minimum of 16 weeks’ pay and additional compensation based on years of service. The final day for departing employees is set for September 9.

Despite the immediate impact of the layoffs, Intuit anticipates growing its overall headcount in the fiscal year 2025 and beyond. The company aims to leverage AI to drive innovation and maintain its leadership position in the financial software industry. By investing heavily in AI and hiring top-tier talent, Intuit is positioning itself to capitalise on the transformative potential of AI technologies.

The post Intuit Laying Off Employees to Intensify Investments in AI appeared first on Analytics India Magazine.