In a significant move, Intuit has announced that approximately 1,800 of its global employees, or 10% of its workforce, will be leaving the company. This decision, however, is not driven by cost-cutting measures, according to CEO Sasan Goodarzi.
Strategic Realignment
Goodarzi explained in an internal email to employees that this move is part of Intuit’s broader strategy to focus on priority areas such as AI and generative AI. The company’s transformation journey aims to increase investments in these areas, including the development of GenAI-powered financial assistants like Intuit Assist. Additionally, Intuit is reimagining its products to offer AI-native experiences, enhancing money movement, expanding mid-market solutions for small businesses, and pursuing international growth.
Workforce Adjustments
Despite the layoffs, Intuit plans to hire around 1,800 new employees with specialized skills in engineering, product development, and customer-facing roles such as sales, customer success, and marketing. The company expects its overall headcount to grow in its fiscal year 2025, starting on August 1.
Of the departing employees, 1,050 are not meeting performance expectations based on a formal review process. Goodarzi stated that these employees would likely be “more successful outside of Intuit.” The company is also reducing the number of executives—directors, SVPs, and EVPs—by approximately 10%, with expanded roles and responsibilities for the remaining executives.
Site Consolidations and Role Eliminations
Intuit is consolidating 80 tech roles to key locations where technology teams are growing, including Atlanta, Bangalore, New York, Tel Aviv, and Toronto. Consequently, it is closing two sites in Edmonton and Boise, impacting over 250 employees. Some of these employees will relocate to other Intuit sites, while others will leave the company. Additionally, Intuit is eliminating over 300 roles across the company to streamline operations and reallocate resources towards key growth areas.
Generous Severance Packages
All departing U.S. employees will receive a severance package that includes a minimum of 16 weeks of pay, plus two additional weeks for every year of service. They will have 60 days before their last working day, which is set for September 9. Employees outside the U.S. will receive similar support, adjusted for local requirements. This package is noted to be the most generous severance offering Intuit has ever provided.
Financial Health and Future Growth
Goodarzi emphasized that Intuit is in a strong financial position. The company reported $14.4 billion in revenue for its fiscal year 2023, a significant increase that moved it up 24 spots on the Fortune 500 list. For the period ending April 30, Intuit reported revenue of $6.7 billion, up 12%.
