TurboTax-parent Intuit will let go of 1,800 employees and close offices in Edmonton and Idaho as it looks to focus on its AI-powered tax preparation software and other financial products.said on Wednesday it will let go of about 1,800 employees, or 10 per cent of its workforce, as it looks to focus on its AI-powered tax preparation software and other financial products.
The company, which has invested heavily in providing generative AI-powered accounting and tax preparation tools for small and medium businesses in the past few years, expects to close two of its sites in Edmonton and Boise, Idaho. Intuit will rehire 1,800 new people primarily in engineering, product and customer-facing roles, CEO Sasan Goodarzi said in a note to employees.“We believe making these changes from a position of strength is the right move and we view the incremental hiring plans post reduction in workforce as a sign that Intuit remains bullish on its growth prospects, especially as it relates to small businesses and Credit Karma,” Evercore ISI analyst Kirk Materne said.
The note added that 300 roles were being eliminated to streamline work, while consolidating 80 technology roles to sites such as Atlanta, Bengaluru, Tel Aviv and others as part of the layoff plan. The layoffs will cost Intuit between $250 million and $260 million, with substantial amounts of the charge expected to be incurred in the fourth quarter, the company said in a regulatory filing.In May, Intuit reported a rise in third-quarter revenue and increased its annual forecasts, expecting a boost in demand for its AI-integrated products.