Intuit plans to cut workforce by about 17% as tax software maker reckons with slowing growth

In a bold move reflecting the current challenges in the tech industry, Intuit, the renowned tax and finance software developer, revealed plans to reduce its workforce by 17%. This decision, announced on Wednesday, comes as part of a larger trend of mass layoffs in the sector amidst the rapid advancements in artificial intelligence. The reduction will impact over 3,000 employees, based on Intuit's last reported workforce of approximately 18,200. Following the announcement, Intuit's stock saw a significant decline, plummeting by 11% in after-hours trading. The company anticipates that this restructuring will generate charges between $300 million to $340 million, predominantly affecting the current quarter. CEO Sasan Goodarzi emphasized the need to refine the company’s operations to ensure sustained growth and agility in the marketplace. Intuit, known for its flagship products like QuickBooks and TurboTax, has faced considerable pressure from investors this year. The broader software market has been shaken as concerns grow that AI advancements may overshadow certain traditional products and services. Notably, Intuit's stock has dropped more than 40% in 2023, contrasting sharply with the S&P 500's approximately 8% increase. Other tech firms are also feeling the strain; earlier this month, ZoomInfo and Cloudflare announced they would each reduce their headcounts by 20%. Cisco revealed plans to cut fewer than 4,000 jobs, equating to less than 5% of its workforce, while Meta confirmed layoffs affecting 8,000 employees. In conjunction with the layoffs, Intuit reported its fiscal third-quarter earnings, showing adjusted earnings per share at $12.80 on revenues of $8.56 billion for the period ending April 30. While this reflects a 10% growth from the previous year, it marks the slowest expansion rate since 2024. Net income also rose about 9%, reaching $3.06 billion. Looking ahead, Intuit has raised its projections for the fiscal year 2026, now anticipating adjusted earnings per share between $23.80 and $23.85, alongside estimated revenues of $21.34 billion to $21.37 billion. Goodarzi expressed optimism about the company's future, believing that embracing a leaner and more focused operational structure will enable Intuit to better serve its customer base and drive innovation.