Finance and fintech firm Intuit has announced plans to lay off approximately 1,800 employees to further advance the company's artificial intelligence efforts. 10% of the company has been identified for layoffs. CEO Sasan Goodarzi notified 1,050 people via email, stating that their performance did not meet expectations.

AI era

The layoffs were not related to the company's profit margin. "We're not doing layoffs to cut costs, and that's true in this case as well," Goodarzi said. said. The CEO attributed the layoffs to the changing technological landscape and the company's effort to further advance its AI efforts.

However, in what could be a twist on the theme, workers will not be replaced by artificial intelligence but by human workers specialized in AI.

According to a blog post from Intuit:

“We will hire approximately 1,800 new people, primarily in engineering, product and customer-focused roles.”

This restructuring is likely to cost the company between $250 million and $260 million, according to regulatory filings. The company's stock fell about 3.6% on the news.

On social media, the reaction could also be described as slightly negative.

Technologist Dare Obasanjo said the announcement "embodies the simultaneous feast and famine of today's technology sector." Obasanjo also stated that the company was "branding" those who were laid off because the majority of them did not meet expectations.

Related: Intuit introduced dedicated large language models for fintech with GenOS.

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