Intuit reduces workforce, closes offices, and plans expansion in Canada
Intuit Inc. is cutting 1,800 employees to sharpen its focus on products that use artificial intelligence.
This move involves replacing low performers and some executives with fresh hires.
According to BNN Bloomberg, the company aims to increase its investment in critical areas to support customers and drive growth.
Technology companies have seen a historic number of layoffs since early 2023, with major firms like Microsoft, Google, Amazon, and Salesforce reducing their workforce in 2024. Intuit, known for TurboTax and QuickBooks, had previously avoided large-scale layoffs.
CEO Sasan Goodarzi mentioned in a letter that over 1,000 employees being cut were “not meeting expectations.” The company is also reducing its executive team by about 10 percent to speed up decision-making processes. This restructuring allows Intuit to reallocate resources to more crucial areas.
Following the announcement, Intuit's shares dropped three percent. Goodarzi reiterated the company's focus on generative AI and its small- and medium-sized business customers. Intuit plans to hire more fintech talent for its Credit Karma business, which aggregates loans and tracks cash flow.
Kirk Materne, an analyst at Evercore ISI, pointed out that the new hiring plans indicate Intuit's confidence in its growth potential, especially in small business and Credit Karma sectors.
Intuit will close its offices in Edmonton, Canada, and Boise, Idaho, consolidating some tech roles into larger hubs. The company also plans to accelerate its expansion in Canada, the UK, and Australia.
The company expects to incur between US$250m and $260m in costs related to the job cuts, primarily from severance, as stated in a filing with the US Securities and Exchange Commission.
