Intuit Announces Strategic Workforce Changes: 10% Layoffs and Expansion Plans

Intuit, an American multinational business software company, is set to implement significant changes in its workforce, including laying off approximately 1,800 employees globally, which amounts to 10% of its workforce. Despite the news causing a 1.6% drop in its shares pre-market, the move is not about cost-cutting, according to Fortune.

Strategic Focus on AI and Growth Areas

In an internal communication viewed by Fortune, CEO Sasan Goodarzi emphasized the challenging but strategic nature of these decisions. Intuit aims to pivot towards AI-driven solutions, particularly enhancing its financial assistant, Intuit Assist, and transitioning its product offerings to AI-native experiences. Additional focal points include advancing money movement capabilities, expanding into mid-market segments for small businesses, and bolstering international growth efforts.

New Hiring Plans Amid Layoffs

Contrary to downsizing, Intuit plans to hire 1,800 employees with specialized skills in engineering, product development, and customer-facing roles such as sales and marketing. This initiative is part of the company’s strategy to grow its workforce overall starting from fiscal year 2025, beginning August 1.

Executive Changes and Hub Consolidation

Intuit is also restructuring its executive team by reducing executive positions by about 10%, while simultaneously expanding certain roles. The company is consolidating 80 technology roles into key tech hubs located in Atlanta, Bangalore, New York, Tel Aviv, and Toronto. Moreover, it will close two sites in Edmonton and Boise, impacting more than 250 employees, who may either relocate or leave the company.

Severance and Support for Departing Employees

Departing employees in the U.S. will receive a severance package that includes a minimum of 16 weeks of pay, with an additional two weeks for each year of service. They have until September 9 to transition out, while international employees will receive similar support adjusted to local requirements.

Conclusion

Intuit’s strategic realignment underscores its commitment to advancing AI technologies and expanding into critical growth areas, despite the necessary reduction in workforce. The company’s proactive hiring plans and focus on enhancing its product offerings highlight its confidence in future growth and innovation in the financial software sector.