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Key Takeaways
- Intuit will cut 10% of its employees, but then replace them with those who will focus on the company’s artificial intelligence efforts.
- The maker of TurboTax and other financial software announced it will eliminate 1,800 positions and close sites in Boise, Idaho and Edmonton, Alberta.
- CEO Sasan Goodarzi said the company faced a critical moment in its history because of the impact of AI.
Intuit (INTU) shares fell Wednesday after the accounting software maker announced that as part of a reorganization plan it was cutting jobs of current employees, but plans to replace them as it shifts its focus towards artificial intelligence.
The company behind TurboTax, QuickBooks, and other financial products wrote in a regulatory filing that it was laying off 1,800 workers, or about 10% of its workers, and closing its Boise, Idaho and Edmonton, Alberta sites “in service to growing technology teams and capabilities in strategic locations.”
Intuit said that it expects to hire a nearly equal number of staffers in fiscal 2025 “to support the Company’s declared growth areas,” and anticipates headcount to grow in fiscal 2025 and beyond.
Charges to be Incurred in Current Quarter
Intuit said it estimates that it will incur approximately $250 million to $260 million in charges to implement the changes, primarily in its fiscal fourth quarter that ends July 31. It sees all the actions associated with the plan to be completed by October 31.
In a letter to employees, CEO Sasan Goodarzi said that the company is “at a critical moment in our history” because of the AI revolution. Goodarzi added that “we must accelerate our innovation and investments in the areas that are most important to our future success.”
Intuit shares were down 2.9% to $630.72 in late trading Wednesday.
TradingView
The stock had recovered in recent weeks after falling sharply in late May when the company warned it will lose 1 million customers who use the free version of its TurboTax tax filing program.