Intuit, the parent company of TurboTax, announced on Wednesday that it will reduce its workforce by approximately 1,800 employees, constituting about 10% of its total workforce.
This decision is part of Intuit’s strategy to prioritize its AI-powered tax preparation software and other financial products.
As part of this restructuring, Intuit plans to close two of its facilities in Edmonton, Canada, and Boise, Idaho.
However, the company intends to hire around 1,800 new employees primarily in engineering, product development, and customer-facing roles, according to CEO Sasan Goodarzi’s communication to employees.
Despite a 3.6% decline in its shares following the announcement, Intuit remains optimistic about its growth prospects, particularly in small businesses and Credit Karma, an area it has heavily invested in recently.
The company also aims to expand its footprint into new markets such as Canada, the United Kingdom, and Australia, while increasing its investments in generative AI technology.
As part of the restructuring, around 300 positions will be eliminated to streamline operations, and approximately 80 technology roles will be consolidated in locations like Atlanta, Bengaluru, and Tel Aviv.
Intuit estimates that these layoffs will result in costs ranging from $250 million to $260 million, with a significant portion expected in the fourth quarter of the fiscal year.
Looking ahead, Intuit anticipates growing its workforce beyond fiscal 2025, reflecting its ongoing commitment to innovation and expansion in the digital financial services sector.
