- Intuit plans to cut 1,800 jobs, about 10% of its workforce.
- Focus shifts to enhancing AI-powered tax prep and financial tools.
- Closure of sites in Edmonton, Canada, and Boise, Idaho.
- Intuit to hire 1,800 new employees in engineering and customer roles.
- Strategic consolidation of technology roles in global locations.
- Anticipates restructuring costs of $250-260 million in fiscal 2025.
- Optimistic outlook with increased investments in AI and global market expansion.
Main AI News:
Intuit, the parent company of TurboTax, announced on Wednesday its decision to reduce its workforce by approximately 1,800 employees, constituting 10% of its current staff. This move is part of Intuit’s strategic shift towards enhancing its AI-powered tax preparation software and other financial tools. Notably, the company plans to close operations in Edmonton, Canada, and Boise, Idaho, while concurrently focusing on hiring around 1,800 new employees, primarily in engineering, product development, and customer-facing roles.
CEO Sasan Goodarzi emphasized the company’s commitment to growth, stating, “We believe these changes, implemented from a position of strength, are essential to our future success.” Intuit aims to rebound swiftly, with hiring efforts slated for fiscal 2025, as indicated in regulatory filings. Evercore ISI analyst Kirk Materne noted, “Intuit’s bullish stance on growth, especially in small businesses and Credit Karma, is underscored by their post-restructuring hiring strategy.”
Additionally, Intuit plans to bolster its investments in generative AI, expanding into new markets such as Canada, the United Kingdom, and Australia. The company also disclosed plans to streamline operations by eliminating 300 roles and consolidating 80 technology positions across various global sites, including Atlanta, Bengaluru, and Tel Aviv.
The restructuring is expected to incur costs ranging between $250 million and $260 million, with significant expenses anticipated in the fourth quarter, according to Intuit’s regulatory filing. Looking ahead, Goodarzi affirmed optimism for future workforce growth beyond fiscal 2025, building upon the company’s recent third-quarter revenue increase and heightened annual forecasts driven by growing demand for AI-integrated products.
Conclusion:
Intuit’s strategic workforce reduction and concurrent investment in AI technologies underscore its commitment to innovation and market expansion. By consolidating operations and focusing on high-demand sectors like AI-integrated financial services, Intuit aims to enhance efficiency and capitalize on emerging opportunities in global markets, positioning itself for sustained growth beyond fiscal 2025.
