Enterprise software program big Intuit is letting go 17% of its employees, or about 3,000 individuals, because it seeks to divert assets in direction of baking in AI into its merchandise, Reuters reportedciting an inside memo despatched to workers.
The memo by CEO Sasan Goodarzi stated the layoffs are supposed to cut back complexity by simplifying the corporate’s company construction and assist it deal with AI efforts, in response to Reuters.
The corporate, which makes accounting, tax and private finance software program like TurboTax, QuickBooks, and Credit score Karma, had 18,200 workers worldwide as of July 2025, in response to its annual report.
Intuit didn’t instantly return a request for remark, or reply to questions on whether or not its administration, administrators, or its CEO would take a pay reduce. Goodarzi’s salary was value $36.8 million, together with money incentives and inventory awards, throughout fiscal 2025.
The layoffs come throughout a nasty yr for the tech workforce. The tech business has already reduce greater than 100,000 jobs this yr, for Statistaand is on monitor to outpace each 2024 and 2025 if the layoff development continues.
Firms similar to Amazon, Block, Cisco, Cloudflare, Meta, Microsoft and Oracle have let go of 1000’s of workers every, all echoing one different in citing a must refocus expenditures round AI initiatives as a cause to chop jobs and restructure their organizations.
On the identical time, all of those corporations have not too long ago reported sturdy revenues and earnings, citing the obvious sturdy demand for AI merchandise, providers, or the infrastructure to energy AI. Almost all these corporations’ share costs have risen, too, as buyers guess that AI will function a brand new avenue of development for software program corporations in every single place.
Intuit, nevertheless, hasn’t been perceived as a beneficiary of the AI increase, with its shares persistently underperforming the broader S&P 500 over the previous 12 months. The corporate has been caught up within the broader current of worries that conventional software-as-a-service companies will be unable to maintain up or compete, as new and upcoming AI services threaten to each change how software program is developed and the way it’s used.
In its fiscal second quarter ended January, Intuit reported income of $4.65 billion, a 17% improve, and internet revenue of $693 million, a 48% enchancment in comparison with a yr earlier.
The corporate expects income to extend by about 10% within the third quarter, for which it’s going to report outcomes later at present.
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