And the layoffs continue: Intuit plans to axe 17% of its workforce, about 3,000 of its approximately 18,200 global employees (as of July 31, according to its annual report), Reuters reported Wednesday. The company said it will focus on accelerating the integration of AI across the company and its services, while streamlining operations.
The news is based on an internal ‌memo sent to employees from CEO Sasan Goodarzi, which argued the move would help the software company behind TurboTax, QuickBooks, Credit Karma, and Mailchimp deliver better products.
In an effort to restructure and streamline, Intuit is also reportedly closing key hubs in Reno, Nevada, and Woodland Hills, California.
The memo cites July 31 as the last day for impacted workers, who will reportedly receive a severance pay package that includes 16 weeks, plus two additional weeks for each year of employment.
Fast Company has reached out to Intuit for comment.
The move comes just hours before Intuit is due to report third-quarter earnings following Wednesday’s closing bell, and the same day Meta is notifying 8,000 employees of layoffs while canceling another 6,000 open roles. That’s amid a major wave of layoffs in the tech sector as Silicon Valley races to pivot toward AI-first restructuring.
The tech industry has seen cuts at Cloudflare, Coinbase, and Upwork in just the last 10 days, and cuts at Amazon, Block, Microsoft, and Oracle already this year. But it’s not just tech workers that are being hit hard with layoffs. Since the beginning of May, Starbucks and retail giant Walmart have also confirmed layoffs.
Shares of Intuit (Nasdaq: INTU) fell 5% in morning trading and were still down nearly 4% by midday Wednesday at the time of this writing.
Intuit’s second-quarter earnings reported $4.7 billion in revenue, beating expectations of $4.53 billion, and up 17% year over year. Adjusted earnings per share (EPS) of $4.15 topped analyst estimates of $3.68.
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