Intuit to cut 3,000 jobs as AI push reshapes operations

In a significant move, Intuit, the renowned US financial software giant, is set to reduce its global workforce by approximately 3,000 employees, representing nearly 17% of its total staff. This decision is part of a comprehensive restructuring plan aimed at streamlining operations and intensifying its commitment to artificial intelligence initiatives. According to insights from a Reuters report, the company communicated the layoffs through an internal memo, outlining that the restructuring is essential for enhancing execution and expediting product delivery. As Intuit increases its investments in AI capabilities across its services, CEO Sasan Goodarzi emphasized the need to reduce organizational complexity to accelerate the company’s strategic objectives. In his memo, Goodarzi stated, "Simplifying the structure will help us deliver better products," and highlighted that these changes will allow Intuit to concentrate more effectively on its significant ventures, particularly the integration of AI within its services. This announcement follows the company’s recent partnerships with OpenAI and Anthropic, aimed at incorporating advanced AI models into its software ecosystem. The goal is to enhance Intuit’s tax, finance, accounting, and marketing tools by embedding them into popular platforms like ChatGPT and Claude. Additionally, the restructuring will lead to the closure of Intuit offices in Reno and Woodland Hills as the company consolidates its teams into select locations. Employees impacted by these layoffs in the US will remain with the company until July 31 and will receive severance packages that include 16 weeks of base pay, plus an additional two weeks for each year of service with Intuit. Intuit's decision aligns with a broader trend in the technology sector, where several companies, including Amazon, Block, and Pinterest, have also announced workforce reductions as they adapt to the efficiency gains and operational shifts associated with AI adoption.