Intuit to Cut Jobs, Refocus on AI and Growth
Intuit to Cut Jobs and Reshape Workforce for AI Focus, Intuit Inc., the maker of popular financial software like TurboTax and QuickBooks, announced plans to cut around 1,800 jobs, impacting roughly 10% of its global workforce.
In a letter to employees on Wednesday, CEO Sasan Goodarzi outlined the decision as a strategic move to bolster the company's artificial intelligence (AI) efforts and position itself for future growth.
Performance and Restructuring Drive Intuit Job Cuts
Goodarzi emphasized that the job cuts are not solely driven by cost-cutting measures. The company plans to rehire a similar number of employees in areas critical to AI development, product creation, and sales.
Over 1,000 employees deemed to be underperforming will be let go, alongside a 10% reduction in executive positions. This streamlining aims to enhance decision-making agility and focus resources on key growth areas.
Intuit targets low performers and executives in 10% jobs cuthttps://t.co/SBzwxy0xJT
— CNBC-TV18 (@CNBCTV18Live) July 10, 2024
Source: Twitter/CNBC-TV18
Intuit to Prioritize AI and Strategic Growth
Intuit's job cuts come amidst a larger trend within the tech industry. Since 2023, major tech companies like Microsoft, Google, and Amazon have undergone significant workforce reductions to adapt to evolving priorities.
Unlike its peers, Intuit had previously avoided large-scale layoffs. However, Goodarzi's letter indicates a strategic shift towards AI-powered products and services. This move will enable Intuit to invest more heavily in customer support and propel expansion into crucial markets.
Intuit Stays Committed to Core Businesses
Despite the job cuts, Intuit remains optimistic about its core businesses, particularly those serving small and medium-sized businesses (SMBs) and its Credit Karma platform.
The company aims to strengthen its fintech capabilities through acquisitions, bolstering Credit Karma's functionalities for loan management and financial monitoring.
Analyst Kirk Materne of Evercore ISI believes Intuit's growth prospects in these areas remain promising.
Intuit to Consolidate and Expand Globally
Intuit plans to close offices in Edmonton, Canada, and Boise, Idaho, consolidating technology roles into larger hubs.
This move coincides with the company's accelerated expansion efforts in Canada, the UK, and Australia. The restructuring will incur costs between $250 million and $260 million, primarily related to severance packages.
While the job cuts represent a significant shift for Intuit, the company's commitment to AI innovation and strategic growth signifies a long-term vision for success.
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