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

In a significant restructuring move, Intuit, the enterprise software powerhouse behind popular financial tools like TurboTax and QuickBooks, is set to lay off approximately 3,000 employees, representing 17% of its global workforce. This decision, as revealed in an internal memo from CEO Sasan Goodarzi, aims to streamline operations and enable the company to better integrate artificial intelligence into its offerings. According to the memo, the layoffs are part of a broader strategy to simplify Intuit's corporate structure. Goodarzi emphasized the need to concentrate resources on AI initiatives, which have become increasingly vital in a rapidly evolving tech landscape. With around 18,200 employees reported as of July 2025, this reduction marks a significant adjustment for the company. Despite the layoffs, Intuit has not commented on the potential impact on executive salaries or whether its leadership, including Goodarzi, will face pay cuts. For context, Goodarzi's compensation for fiscal year 2025 was reported at $36.8 million, encompassing cash bonuses and stock options. The tech sector as a whole is experiencing a tumultuous year, with over 100,000 layoffs already recorded in 2023. Major players like Amazon, Meta, and Microsoft have similarly announced job cuts, often citing the need to pivot toward AI as a driving factor behind these decisions. Interestingly, these companies have also reported robust earnings, suggesting strong market demand for AI-related solutions. However, Intuit's stock performance has not mirrored this trend, underperforming relative to the S&P 500 over the past year. Concerns are rising that traditional software-as-a-service companies may struggle to adapt to the competitive pressures posed by emerging AI technologies. In its most recent fiscal report, Intuit announced a revenue increase of 17% year-over-year, totaling $4.65 billion, along with a net profit of $693 million, a substantial 48% rise compared to the previous year. The company anticipates a 10% revenue growth in the upcoming third quarter, with results set to be disclosed soon.