Mass layoffs due to companies misunderstanding pandemic: Intuit CEO

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The CEO of software giant Intuit, which has avoided mass layoffs, says tech firms axed jobs because they misread the pandemic

Mass layoffs through 2022 and 2023 are down to companies and CEOs miscalculating the long-term impact of the pandemic, according to Sasan Goodarzi, chief executive of software giant Intuit.

Companies had made the incorrect assumption that COVID-19 had brought about structural changes, rather than one-off, events-based changes, Goodarzi told Insider in an interview. Intuit, which owns a portfolio of software products including email-marketing service Mailchimp, tax-filing software TurboTax, and credit service CreditKarma, had 17,300 employees, as of July last year, according to financial filings, up from 13,500 the prior year. A spokeswoman confirmed to Insider that the company has not conducted mass layoffs.

"When you see ads going through the roof, payments volume — that's just two examples — some companies assume that is a structural change that will never pull back," he said."They then hired in sales, data analytics, engineering to support that growth into perpetuity." Now, companies that grew in the pandemic are seeing a slowdown."They don't need all that cost structure, that factually I do see," he added. . That translated to big boosts to digital companies' bottom lines.

 

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