Intuit cuts 3,000 jobs while CEO insists workforce reduction had nothing to do with AI

Intuit to lay off over 3,000 employees to refocus on AI | TechCrunch

Enterprise software giant Intuit is letting go 17% of its staff, or about 3,000 people, as it seeks to divert resources towards baking in AI into its products, Reuters reported, citing an internal memo sent to employees. The memo by CEO Sasan Goodarzi said the layoffs are meant to reduce complexity by simplifying the company's corporate structure and help it focus on AI efforts, according to Reuters. The company, which makes accounting, tax and personal finance software like TurboTax, QuickBooks, and Credit Karma, had 18,200 employees worldwide as of July 2025, according to its annual report. Intuit did not immediately return a request for comment, or respond to questions about whether its management, directors, or its CEO would take a pay cut. Goodarzi's salary was worth $36.8 million, including cash incentives and stock awards, during fiscal 2025. The layoffs come during a bad year for the tech workforce. The tech industry has already cut more than 100,000 jobs this year, per Statista, and is on track to outpace both 2024 and 2025 if the layoff trend continues. Companies such as Amazon, Block, Cisco, Cloudflare, Meta, Microsoft and Oracle have let go of thousands of employees each, all echoing one other in citing a need to refocus expenditures around AI projects as a reason to cut jobs and restructure their organizations. At the same time, all of these companies have recently reported strong revenues and profits, citing the apparent strong demand for AI products, services, or the infrastructure to power AI. Nearly all these companies' share prices have risen, too, as investors bet that AI will serve as a new avenue of growth for software companies everywhere. Intuit, however, hasn't been perceived as a beneficiary of the AI boom, with its shares consistently underperforming the broader S&P 500 over the past 12 months. The company has been caught up in the broader current of worries that traditional software-as-a-service firms will not be able to keep up or compete, as new and upcoming AI products and services threaten to both change how software is developed and how it is used. In its fiscal second quarter ended January, Intuit reported revenue of $4.65 billion, a 17% increase, and net profit of $693 million, a 48% improvement compared to a year earlier. The company expects revenue to increase by about 10% in the third quarter, for which it will report results later today.

Exclusive: Intuit to cut 17% of global jobs to streamline operations, memo shows

May 20 (Reuters) - Intuit (INTU.O), opens new tab is laying off about 17% of its workforce, or about 3,000 employees worldwide, to streamline operations and sharpen focus on its key bets including its AI efforts, according to an internal memo seen by Reuters on Wednesday. CEO Sasan Goodarzi sent an email to staff earlier in the day, saying that reducing complexity and simplifying the structure would help it deliver better products, according to the memo and a source familiar with the matter. Intuit, which ⁠is scheduled to report third-quarter results later on Wednesday, did not immediately return a request for comment. Its shares were down nearly 5% in morning trading. It joins a growing list of companies that have announced job cuts this year, with some blaming the layoffs on higher efficiencies brought on by AI, including Jack Dorsey's Block (XYZ.N), opens new tab, Amazon (AMZN.O), opens new tab and Pinterest (PINS.N), opens new tab. Goodarzi said in his email the layoffs would help Intuit sharpen its focus on the company's big bets, including efforts to infuse AI technology across its services. The company has signed multi-year deals with AI startups Anthropic and OpenAI to integrate their AI models into its software, and add Intuit's personalized tax, finance, accounting and marketing capabilities ⁠into Claude and ChatGPT. The last day for impacted staff in the United States will be July 31 and they will receive 16 weeks of base pay and two extra weeks for every year at Intuit as part of the severance package, the memo on Wednesday showed. The company is also winding down its Reno and Woodland Hills offices as ⁠part of a strategic restructuring to consolidate teams in key hubs, according to the memo. Intuit had about 18,200 employees in seven countries as of July 31, 2025, according to the company's annual report. Silicon Valley employees have grown increasingly concerned about ⁠AI disruption in recent months after over 140 tech companies laid off more than 111,000 employees this year, according to Layoffs.fyi, a website tracking sectorwide job cuts. The figure was around 124,636 for 2025. At ⁠the World Economic Forum's annual meeting in January, two executives told Reuters that AI would be used as an excuse by companies that were already planning layoffs. Reporting by Rashika Singh and Jaspreet Singh in Bengaluru; Editing by Sweta Singh and Pooja Desai Our Standards: The Thomson Reuters Trust Principles., opens new tab

Intuit CEO says company's 17% workforce cut had 'nothing to do with AI'

Intuit -- the parent company of TurboTax, Credit Karma and QuickBooks -- cut roughly 17% of its workforce on Wednesday, but CEO Sasan Goodarzi said the layoffs were designed to streamline operations and improve execution rather than replace workers with artificial intelligence. "None of it had to do with AI," Goodarzi told CNBC's Jim Cramer on "Mad Money." "Everything was about how do we become more effective." Intuit's job cuts come amid concerns that advances in generative AI could lead to major spikes in unemployment, particularly in the tech industry. As of this week, 114,173 tech workers have been laid off so far in 2026, according to Layoffs.fyi. Companies including Microsoft, Meta and Amazon have all announced thousands of layoffs this year while simultaneously ramping up investments in artificial intelligence infrastructure and products. For Intuit, Goodarzi said the workforce reduction was part of a broader effort to simplify Intuit's organizational structure and create what he described as a faster-moving "builder culture." "That really led us to three areas that drove the reduction in the workforce," he said. According to Goodarzi, the layoffs allowed Intuit to reduce management layers, eliminate "coordination-heavy roles" tied to operational complexity, and remove duplicative functions after integrating Credit Karma and TurboTax more closely together. The comments come as investors increasingly debate whether generative AI tools from companies like OpenAI and Anthropic could disrupt traditional software businesses. Shares of Intuit have fallen roughly 41% this year. Goodarzi pushed back on the idea that artificial intelligence poses a near-term threat to Intuit's core business. "People spend seven times more on tax and accounting experts as they do on software, because people don't buy code, they buy confidence," he said. Goodarzi also argued large language models alone are unlikely to replace Intuit's platform for high-stakes financial tasks. "Accuracy, compliance, being audited for these high-stakes decisions is why people use us," he said. "LLMs are not the place where people rely on to do their taxes and to run their business." Intuit reported quarterly earnings Wednesday after the close, posting revenue of $8.56 billion, slightly ahead of analysts' estimates of $8.54 billion, while adjusted earnings per share of $12.80 topped consensus expectations of $12.57.

"You can't run your business with an LLM" - Intuit axes 17% of its workforce, but don't blame AI, insists CEO Sasan Goodarzi

Intuit plans to eliminate roughly 3,000 jobs, roughly 17% of its total workforce of 18,200 staffers, in what the mainstream media has attributed to AI. But CEO Sasan Goodarzi insists that blaming AI is a mis-characterization, arguing: We are reducing our full-time workforce by 17% to simplify our organizational structure to become a faster, leaner and more focused company. We are at an important inflection point with strong category leadership and multiple growth engines across our three 'Big Bets'. To fully capitalize on this opportunity, we must operate with greater velocity, urgency and discipline. These deliberate actions are about scaling our growth engines and strengthening our core. We're sharpening our cost structure to deliver durable long-term growth and margin expansion. This is how we build the next chapter of Intuit, services and software powered by data, AI, and human intelligence. We're positioning the company to deliver durable growth you can count on. He adds: These, for us, are always very hard decisions because at the end of the day, we're in a people business, and culture matters a lot, and we don't take decisions like this lightly. With that said, and it's very important for us as a company, one of the things that we take a lot of pride in is, to treat everything that we do like it's Day One. So if today is Day One as a CEO and as a management team, what would we do? Goodazri rejects the idea that the cuts can be laid at the door of AI: Really, let me tell you what this is not about - this was not about AI. As you know, we are very invested in AI and the tools that we use internally, which is what's driving a lot of our efficiencies and margin expansion. And also AI is embedded in everything that we do that helps us serve customers, which is what's fueling our growth. We always look at how we can continue culturally to have a company that's a company of builders and move fast. One of the things that we've been really studying for the last year is, beyond the tools that we are putting in place across the company, what are actually the biggest blockers and what's getting in our way. As a result of this sort of ongoing review, several things emerged that led to this 17% headcount reduction, he says: The first is we significantly reduced the number of management layers and to reduce the complexity of information flow of how fast we make decisions so we can push decision-making to our frontline folks that are the builders. The second, by reducing and looking at reducing the number of management layers, it also led us to reducing the number of what we call co-ordination heavy roles that we had in place. These could be PMO, BizOps, more product managers and designers than you may need because of what's possible in terms of how fast you can build. The third big area was now that we've put TurboTax and Credit Karma together as a unit and as a platform, we got to a place where, as we are concluding all of the integration work, we had a lot of duplication, and so we reduced the number of roles that were, in essence, duplicates. And then, last but not least that's worthy of mentioning is really sizing and re-sizing Mailchimp in the context of the growth opportunities ahead. He adds: If I take it back to, well, what are we doing with the re-structuring [and] where is it going, I would say there are three things that matter most, again, with a sort of a Day One mentality and mindset. One is making sure that we feel good about our growth engines. When you look at assisted tax, money, and mid-market, they're all growing well north of 30%, and we want to be able to scale those faster. The second is we want to re-imagine, particularly in DIY tax, how we ensure for a certain segment of customers that are less than $50,000, how do we ensure that we can win with those customers? And then third, by being faster, flatter, and more focused, it allowed us to look at the workforce reduction. In terms of Intuit's view of the role in AI in its markets, it's positive, but with important caveats, as Goodarzi explains: It's really important to recognize that the majority of people are buying confidence to get assistance...it's important to recognize that businesses, while they use Google, they use LLMs (Large Language Models) to do searches, do queries, you can't run your business with an LLM because you're managing your books, you're managing your money, you're managing your payroll and accuracy and compliance of doing that matters and running a business is mission-critical. But AI is an important growth driver, he adds: The biggest thing that our partnership with an Anthropic and an OpenAI really fuels is when you look at our $300 billion in total addressable market where we have 6% penetration, it's actually opening up the funnel for us with high-intent customers that are just getting started that may want to start with basic capabilities like invoicing and how do I manage my customers, and we help them do that by connecting the QuickBooks within an LLM. Overall, the Intuit pitch is double-pronged: Our powerful combination of proprietary data, domain-specific AI platform capabilities and AI-powered human expertise is setting the standard for trusted financial intelligence. Ultimately, customers buy confidence, not code, which is why they spend at least 7x more on accounting and tax experts than on software alone. Intuit brings together data, AI and human expertise into a single system of intelligence that does the work for customers. As a management team, we take pride in re-inventing ourselves, and that is exactly what we are doing. For Q3 2026, Intuit turned in revenues of $8.56 billion, up 10% year-on-year, but missing Wall Street consensus expectations, with an operating income of $4.020 billion. The results were solid enough, but the news of the redundancies, while hardly uncommon in the tech sector today, triggered a slide in the share price.

Intuit cuts 17% of its staff to focus on AI, but refuses to blame AI - SiliconANGLE

The financial services software company Intuit Inc., known for platforms including Credit Karma, QuickBooks and TurboTax, said today it's letting go 17% of its workforce, or around 3,000 people. The cuts, announced as the company delivered its latest financial results, will allow it to divert more resources towards the artificial intelligence innovations increasingly powering its software. But it insisted that it's not replacing anyone through automation. In a memo to employees, Chief Executive Sasan Goodarzi added the layoffs will also help to reduce complexity at the company by simplifying its corporate structure. Intuit had around 18,200 employees globally at the end of July 2025, according to its last annual report. "None of it had to do with AI," Goodarzi told analysts on a conference call today. "Everything was about how do we become more effective." The CEO explained that senior executives had come to realize that the company had too many management layers and claimed that this had been slowing innovation. By flattening the organization, he said he hopes to "reduce the complexity of information flow so we can push decision making to our frontline folks that are the builders." The focus of the layoffs is therefore on "coordination-heavy" roles such as project managers and business operations staff, which are now less necessary due to the speed at which teams can innovate. In addition, the company has also decided to merge the Credit Karma and TurboTax platforms into a single business unit, and the cuts eliminate some of the overlaps within that new group, Goodarzi explained. Analysts asked if Intuit planned to automate some of the tasks currently performed by affected workers, but Goodarzi insisted that's not the case. There have been increasing concerns lately that advances in AI could lead to wholesale job cuts in the technology industry as more work is automated. This year, 114,173 tech workers have lost their jobs so far, according to data from Layoffs.fi. Tech giants including Microsoft Corp., Meta Platforms Inc. and Amazon.com Inc. have all announced thousands of job cuts, while simultaneously increasing their investments in AI infrastructure and tools. Goodarzi said the cuts would cost the company around $340 million in restructuring charges, with most of that stemming from severance payments. However, he said that the company would ultimately grow its bottom line following this decision. "A big chunk of this, you can count on it to go to margin expansion and EPS growth, and a smaller part is going to be scaling the growth engines because we feel good that the growth engines are funded quite well, just because of the productivity we see internally," he said. Intuit is most definitely under pressure to find some way of sparking growth. In addition to concerns over layoffs, there are also fears that the rise of AI could end up sidelining traditional software businesses, because of the way they enable anyone to create business applications using natural language prompts. Intuit's stock has fallen 41% in the year to date. Goodarzi pushed back at the notion that AI represents a threat to his company's business. "People spend seven times more on tax and accounting experts as they do on software, because people don't buy code, they buy confidence," he pointed out. He also claimed that large language models are reliable enough to replace his company's software for high-stakes financial tasks. "Accuracy, compliance, being audited for these high-stakes decisions is why people choose us," he argued. "LLMs are not the place where people rely on to do their taxes and to run their business." In its most recent quarter, Intuit delivered adjusted earnings of $12.80 per share, beating Wall Street's expectations of $12.57 by a comfortable margin. Revenue for the period grew 10% from a year earlier to $8.56 billion, just ahead of the Street's target of $8.54 billion.

Intuit layoffs today: Stock takes a dive as company cuts 17% of jobs, citing AI acceleration

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 integrating 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.

Intuit to cut 17% of global jobs to streamline operations, memo shows - The Economic Times

Intuit is cutting around 3,000 jobs globally. This move aims to simplify operations and boost focus on key areas, especially artificial intelligence. The company is integrating AI models from startups like Anthropic and OpenAI. This follows a trend of tech companies reducing staff this year. Employees in the US will see their last day on July 31.Intuit is laying off about 17% of its workforce, or about 3,000 employees worldwide, to streamline operations and sharpen focus on its key bets including its AI efforts, according to an internal memo seen by Reuters on Wednesday. CEO Sasan Goodarzi sent an email to staff earlier in the day, saying that reducing complexity and ⁠simplifying ⁠the structure would help it deliver better products, according to the memo and a source familiar with the matter. Intuit, which is scheduled to report third-quarter results later on Wednesday, did not immediately return a request for comment. It joins a growing list of companies that have announced job cuts this year, with some blaming the layoffs on higher efficiencies brought on by AI, including Jack Dorsey's ⁠Block, Amazon and Pinterest. Goodarzi said in his email the layoffs would help Intuit sharpen its focus on the company's big bets, including efforts ⁠to infuse AI technology across its services. The company has signed multi-year deals with AI startups Anthropic and OpenAI to integrate their AI models into its software and add Intuit's personalized tax, finance, accounting and marketing capabilities into Claude and ChatGPT. The last day for impacted staff in the United States will be July 31 and they will receive 16 weeks of base pay and two extra weeks for every year at Intuit as part of the severance package, the memo on Wednesday showed. Intuit had about 18,200 employees in seven countries as of July 31, 2025, according to the ⁠company's annual report. Silicon Valley employees have grown increasingly concerned about AI disruption in recent months after over 140 tech companies laid off more than 111,000 employees this year, according to Layoffs.fyi, a website tracking sectorwide job cuts. The figure was around 124,636 for 2025. At the World Economic Forum's annual meeting in January, two executives told Reuters that AI would be used as an excuse by companies that were already planning layoffs.

Intuit Stock Falls After Report Says Company To Cut 17% Of Workforce - Intuit (NASDAQ:INTU)

* Intuit stock is among today's weakest performers. Why is INTU stock falling? Workforce Reduction And AI Push According to a Reuters report citing an internal memo, CEO Sasan Goodarzi told employees that the layoffs are intended to reduce complexity and simplify the company's organizational structure in order to help deliver better products. The company reportedly said the workforce reduction will allow it to sharpen its focus on key strategic priorities, including efforts to integrate AI technology across its services. Reuters reported that Intuit has signed multi-year agreements with Anthropic and OpenAI to incorporate AI models into its software offerings and integrate Intuit's tax, finance, accounting and marketing capabilities into Claude and ChatGPT. According to the memo, impacted U.S. employees will remain with the company through July 31 and will receive 16 weeks of base pay plus an additional two weeks for every year worked at Intuit as part of the severance package. The company is also reportedly winding down its Reno and Woodland Hills offices as part of the restructuring initiative aimed at consolidating teams into key hubs. Reuters reported that Intuit had approximately 18,200 employees across seven countries as of July 31. Intuit Shares Edge Lower INTU Price Action: At the time of publication, Intuit shares are trading 3.23% lower at $386.81, according to data from Benzinga Pro. Image via Shutterstock This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Intuit to Cut 17% of Workforce in Shift Toward AI | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. In an email to employees, Chief Executive Sasan Goodarzi said reducing organizational complexity and simplifying the company's structure was necessary for delivering improved products. As part of this consolidation, the company, which had approximately 18,200 employees as of mid-2025, will also wind down its offices in Reno, Nev. and Woodland Hills, Calif. The layoffs mark a significant pivot for the maker of TurboTax and QuickBooks as it prioritizes its "big bets," specifically the integration of generative AI across its service suite. Intuit has already secured multi-year agreements with AI leaders Anthropic and OpenAI to incorporate their models into its software, while simultaneously adding Intuit's proprietary tax and accounting capabilities into AI bots like ChatGPT and Claude. Shares of Intuit fell nearly 5% in morning trading following the announcement. The company, which was scheduled to report third-quarter results later Wednesday, joins a growing roster of tech firms, including Block, Amazon and Pinterest, that have cited AI-driven efficiency gains as a factor in recent layoffs. Impacted employees in the United States will remain with the company through July 31. The severance package includes 16 weeks of base pay, plus two additional weeks for every year of service at the firm, Reuters reported. The layoffs come amid a broader contraction in the technology sector. More than 111,000 employees have been laid off across 140 tech companies so far this year, following more than 124,000 job losses in 2025, Reuters reported, citing data from tracker Layoffs.fyi. Some industry observers have noted that AI is being used as a justification for restructuring plans that were already in development. Inuit's layoffs have been foreshadowed by recent AI initiatives. Earlier this month, the company introduced new AI-powered human capital management tools for small and medium-sized businesses (SMBs), designed to consolidate their software stacks. Last year, Intuit restructured its entire business model to focus on integrated services rather than software tools, citing AI as a key driver of this new strategy.

California's Intuit to slash thousands of jobs, cut workforce by 17%, internal memo shows

Tech giant Intuit is shuttering its Los Angeles-area office and slashing thousands of jobs worldwide in a sweeping shakeup that comes as Silicon Valley races to embrace artificial intelligence. The company behind TurboTax, CreditKarma and QuickBooks is laying off roughly 3,000 employees -- or about 17% of its global workforce -- as part of a restructuring effort aimed at streamlining operations and sharpening its focus on AI, according to an internal memo obtained by Reuters. The cuts will hit California directly. Intuit confirmed in the memo that it is "winding down" its Woodland Hills office. Another office in Reno, Nevada will also shutter, as it consolidates workers into what it described as "key hubs." The company employed around 18,200 workers across seven countries as of July 31, 2025, according to its annual report. CEO Sasan Goodarzi told employees in an email Wednesday that the layoffs were intended to reduce "complexity" and simplify the company's structure so it could deliver products faster and invest more heavily in major priorities -- including artificial intelligence, Reuters reported. Intuit has aggressively pushed into AI in recent years, signing deals with AI firms Anthropic and OpenAI to integrate their technology into products including TurboTax and QuickBooks. The restructuring comes as fears grow across California's tech industry over the impact AI could have on white-collar jobs. The Intuit bloodbath comes amid a brutal stretch for California tech workers after LinkedIn revealed this week that more than 600 employees were also being laid off across the Golden State. More than 111,000 workers at over 140 tech companies have already been laid off this year, according to data from Layoffs.fyi cited by Reuters. The cuts landed the same day Meta began slashing thousands of jobs in another AI-driven shakeup at a Silicon Valley giant. Some companies have openly acknowledged that AI-driven efficiency gains are reducing the need for certain positions. The last day for affected US employees will be July 31, according to the memo. Workers impacted by the cuts will receive 16 weeks of base pay plus an additional two weeks for every year they worked at Intuit, Reuters reported. The company's stock fell nearly 5% in morning trading Wednesday following news of the layoffs.

Intuit to cut 17% of global jobs to streamline operations, memo shows: Reuters exclusive

Intuit is laying off about 17 per cent of its workforce, or about 3,000 employees worldwide, to streamline operations and sharpen focus on its key bets including its AI efforts, according to an internal memo seen by Reuters on Wednesday. CEO Sasan Goodarzi sent an email to staff earlier in the day, saying that reducing complexity and simplifying the structure would help it deliver better products, according to the memo and a source familiar with the matter. Intuit, which is scheduled to report third-quarter results later on Wednesday, did not immediately return a request for comment. Its shares were down nearly five per cent in morning trading. It joins a growing list of companies that have announced job cuts this year, with some blaming the layoffs on higher efficiencies brought on by AI, including Jack Dorsey's Block, Amazon and Pinterest. Goodarzi said in his email the layoffs would help Intuit sharpen its focus on the company's big bets, including efforts to infuse AI technology across its services. The company has signed multi-year deals with AI startups Anthropic and OpenAI to integrate their AI models into its software, and add Intuit's personalized tax, finance, accounting and marketing capabilities into Claude and ChatGPT. The last day for impacted staff in the United States will be July 31 and they will receive 16 weeks of base pay and two extra weeks for every year at Intuit as part of the severance package, the memo on Wednesday showed. The company is also winding down its Reno and Woodland Hills offices as part of a strategic restructuring to consolidate teams in key hubs, according to the memo. Intuit had about 18,200 employees in seven countries as of July 31, 2025, according to the company's annual report. Silicon Valley employees have grown increasingly concerned about AI disruption in recent months after over 140 tech companies laid off more than 111,000 employees this year, according to Layoffs.fyi, a website tracking sector wide job cuts. The figure was around 124,636 for 2025. At the World Economic Forum's annual meeting in January, two executives told Reuters that AI would be used as an excuse by companies that were already planning layoffs.

Intuit to Cut 17% of Staff, Invest in 'Big Bets' -- Update

By Dean Seal and Kristin Broughton Intuit plans to lay off 17% of its workforce, or about 3,100 employees, and invest the savings in "big bets" as it makes artificial intelligence a centerpiece of its business. The maker of TurboTax and QuickBooks said Wednesday that slimming down its staff would improve efficiency companywide. The restructuring is expected to cost about $300 million to $340 million, most of which will be recognized in the current summer quarter. Chief Financial Officer Sandeep Aujla said the layoffs are focused on coordination-related roles including project managers and business operations teams. Mid- and lower-level managerial roles are being removed as well. The resulting company will be leaner and more focused, according to Aujla, who said the cuts weren't directly tied to Intuit's own use of AI. "We've just got to make sure that more folks are at the forefront of dealing with the customers-and particularly in this age, it's around managing agents as opposed to you know managing a set of people," Aujla said. Intuit didn't provide a projection of expected long-term savings from the layoffs. Those savings will be used to invest in the company's "big bets" and otherwise flow toward improving margins, Aujla said. The Mountain View, Calif., company long known for its tax-preparation software has been remaking itself as an AI-first platform. It partnered with Anthropic earlier this year to build AI agents for its consumer and business clients, and teamed with OpenAI last year to deepen its use of generative AI models. Intuit is the latest tech company to slash its workforce while pouring more resources into AI. Cisco made a similar move last week. The job cuts were announced in tandem with the results from its critical tax-season quarter, which ran from February through April 30. Revenue climbed 10% to $8.56 billion, just ahead of analyst targets, according to FactSet. Consumer revenue was up 8% at $5.3 billion, including a 7% jump for TurboTax and 15% growth at Credit Karma. Its business-focused verticals recorded even bigger gains. The company posted a profit of $3.06 billion, or $11.09 a share, compared with $2.82 billion, or $10.02 a share, in the same quarter a year earlier. Stripping out one-time items, adjusted earnings were $12.80 a share, beating analyst projections for $12.57. For the full fiscal year, which ends July 31, Intuit raised its revenue growth expectations for both the business and consumer segments. Total revenue is expected to rise 11% to 12% for the final three months of the current fiscal year, with fourth-quarter adjusted earnings expected to hit $3.56 to $3.62 a share. Analysts polled by FactSet had been projecting $3.14 a share. Intuit shares, which fell 4% during Wednesday's trading session, slumped another 11% to $342 after hours. Through Wednesday's close, the stock has dropped more than 40% this year.

Intuit boosts annual forecasts, to cut 17% of global staff

May 20 (Reuters) - TurboTax parent Intuit raised its annual revenue and profit forecasts on Wednesday and announced it would trim 17% of its workforce, sharpening its focus on artificial intelligence-powered financial software amid robust demand. The reduction of nearly 3,000 roles globally, reported exclusively by Reuters earlier in the day, is expected to help simplify organizational structure and streamline key areas, including AI efforts, according to a staff memo sent by CEO Sasan Goodarzi. The tax and accounting software provider said it expects $300 million to $340 million in restructuring charges tied to the job cuts, to be recognized in the fourth quarter. It had about 18,200 employees across seven countries as of July 31, 2025, according to its annual report. Intuit now expects annual revenue between $21.34 billion and $21.37 billion, up from its previous projection of $21 billion to $21.19 billion. It raised its annual adjusted profit forecast to a range of $23.80 to $23.85 per share, up from $22.98 to $23.18 per share previously. The recent tax season helped lift Intuit's February-April revenue 10% to $8.56 billion from a year earlier, though it fell short of analysts' average estimate of $8.61 billion, according to data compiled by LSEG. Meanwhile, Intuit's TurboTax Live offering, which connects tax filers with experts, has seen some uptake and could help allay investor concerns about generative AI tools disrupting the company's lucrative consumer tax franchise. Partnerships with AI companies, including a multi-year deal with Anthropic announced in February, are central to the company's strategy of embedding AI tools across its platforms as well as adding its personalized tax, finance, accounting and ?marketing capabilities to AI applications. (Reporting by Anhata Rooprai in Bengaluru and Juby Babu in Mexico City; Editing by Diti Pujara)

Intuit to cut 17% of global jobs to streamline operations, memo shows

May 20 (Reuters) - Intuit is laying off about 17% of its workforce, or about 3,000 employees worldwide, to streamline operations and sharpen focus on its key bets including its AI efforts, according to an internal memo seen by Reuters on Wednesday. CEO Sasan Goodarzi sent an email to staff earlier in the day, saying that reducing complexity and simplifying the structure would help it deliver better products, according to the memo and a source familiar with the matter. Intuit, which is scheduled to report third-quarter results later on Wednesday, did not immediately return a request for comment. It joins a growing list of companies that have announced job cuts this year, with some blaming the layoffs on higher efficiencies brought on by AI, including Jack Dorsey's Block, Amazon and Pinterest. Goodarzi said in his email the layoffs would help Intuit sharpen its focus on the company's big bets, including efforts to infuse AI technology across its services. The company has signed multi-year deals with AI startups Anthropic and OpenAI to integrate their AI models into its software and add Intuit's personalized tax, finance, accounting and marketing capabilities into Claude and ChatGPT. The last day for impacted staff in the United States will be July 31 and they will receive 16 weeks of base pay and two extra weeks for every year at Intuit as part of the severance package, the memo on Wednesday showed. Intuit had about 18,200 employees in seven countries as of July 31, 2025, according to the company's annual report. Silicon Valley employees have grown increasingly concerned about AI disruption in recent months after over 140 tech companies laid off more than 111,000 employees this year, according to Layoffs.fyi, a website tracking sectorwide job cuts. The figure was around 124,636 for 2025. At the World Economic Forum's annual meeting in January, two executives told Reuters that AI would be used as an excuse by companies that were already planning layoffs. (Reporting by Rashika Singh and Jaspreet Singh in Bengaluru; Editing by Sweta Singh and Pooja Desai) By Rashika Singh and Jaspreet Singh