Intuit, the creator of TurboTax and QuickBooks, announced the dismissal of approximately 10% of its workforce, translating to 1,800 jobs. This decision aligns with the company’s strategic shift towards integrating artificial intelligence (AI) into its operations.
Despite these layoffs, Intuit plans to maintain its workforce by recruiting individuals with AI-related expertise over the coming year.
Strategic reorganization and layoffs
Intuit is reorganizing to incorporate AI into its various business processes better. The layoffs are not primarily for cost-cutting but aim to reshape the workforce to meet new technological demands.
Notably, 1,000 layoffs involve employees who must meet the company’s performance expectations. Additionally, a 10% reduction of executive positions is underway, with an extra 300 jobs being cut to streamline operations and reallocate resources towards growth sectors.
CEO’s vision for AI integration
In a memo titled “Investing in the future,” Intuit’s CEO, Sasan Goodarzi, emphasized the transformative impact of AI technology. He believed that companies slow to adopt AI technologies risk obsolescence. Goodarzi assured employees that these changes are pivotal for staying competitive in the rapidly evolving tech landscape.
Intuit’s SEC filings further reveal plans to keep the total headcount stable. The company expects to match the number of layoffs with new hires by 2025, particularly in roles that support the company’s AI and data initiatives. In addition to workforce adjustments, Intuit will shut down its offices in Idaho, Boise, and Edmonton, Canada, affecting over 250 employees.
These offices are closing as part of a broader strategy to consolidate technology roles in key cities like New York, Bangalore, Tel Aviv, Toronto, and Atlanta. The company focuses on enhancing its AI-driven services, including the Intuit Assist financial tool, aiming to boost its international market presence and improve financial solutions.
Support for affected employees
Intuit has committed to supporting outgoing employees by offering 16 weeks of severance pay and additional benefits, including career transition services. This support extends to U.S. and international employees, ensuring they receive assistance navigating their careers.
The company’s elevated performance expectations underline its commitment to a highly skilled and efficient workforce ready to tackle the challenges of next-generation technologies.
Intuit joins other tech giants like Dropbox, Google, and Microsoft, which have similarly adjusted their workforce compositions in response to the burgeoning AI era. These changes reflect a broader industry trend of companies optimizing their talent pools to harness the potential of advanced technologies.
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