The maker of TurboTax and QuickBooks will cut about 3,100 jobs and close two offices, triggering up to $340 million in charges
Leon Bennett / Getty Images
Intuit $INTU said Wednesday that it is cutting 17% of its full-time workforce, a reduction of roughly 3,100 positions, as the company restructures around artificial intelligence. Intuit stock fell more than 11% in after-hours trading following the announcement.
Charges of $300 million to $340 million are anticipated from the restructuring, with the bulk hitting Intuit's books in the fiscal quarter now underway, the company said. Intuit will also close offices in Reno, Nevada, and Woodland Hills, California, and wind down its Mailchimp operations, according to Reuters, which reviewed an internal memo from CEO Sasan Goodarzi.
"We believe we can serve more customers and deliver breakthrough products that fuel our customers' success by reducing complexity and simplifying our structure to become a faster, leaner, and more focused company," Goodarzi said in a memo to employees.
Despite framing the restructuring around AI investment, Goodarzi told Barron's that AI was not the cause of the job cuts. "This is not an AI layoff. Frankly, I think we overuse that as a reason to communicate across the industry," he said. According to The Wall Street Journal, CFO Sandeep Aujla described the reductions as targeting roles centered on coordination — including project management and business operations functions — along with middle and junior management layers, and he maintained that Intuit's internal deployment of AI was not a driving factor. The savings will be invested in the company's "big bets" and directed toward margin improvement, Aujla said.
Intuit also reported fiscal third-quarter earnings Wednesday. For the quarter, Intuit posted adjusted earnings of $12.80 per share alongside $8.56 billion in revenue, a 10% increase from the prior year. Both figures topped Wall Street expectations — FactSet consensus estimates had called for $12.57 in adjusted earnings per share and $8.54 billion in revenue, as noted by the Journal. The company's net income for the quarter was $3.06 billion, up from $2.82 billion in the year-ago period. The company also raised its full-year guidance, now projecting adjusted earnings of $23.80 to $23.85 per share on revenue of $21.34 billion to $21.37 billion.
The layoffs add to a mounting toll across the tech industry. The job cuts arrive as the tech sector absorbs a wave of workforce reductions — Layoffs.fyi puts the 2026 industry total above 111,000, a tally that is closing in on the site's full-year 2025 figure of roughly 124,000, Reuters reported. Intuit stock has fallen more than 40% this year, reflecting broad investor concern that AI will erode demand for traditional software products.
According to Reuters, the severance terms for U.S. workers include a base payment covering 16 weeks of pay, with an additional two weeks added for every year an employee worked at the company.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.
