Enterprise software giant Intuit is cutting 17% of its workforce, approximately 3,000 employees, to focus on integrating AI into its products, according to a Reuters report citing an internal memo. CEO Sasan Goodarzi stated the layoffs aim to simplify the corporate structure and prioritize AI initiatives.
Intuit, known for TurboTax, QuickBooks, and Credit Karma, had 18,200 employees globally as of July 2025, as per its annual report. The company did not provide immediate comments or address questions about potential pay cuts for management, including CEO Sasan Goodarzi, who earned $36.8 million in fiscal 2025.
These layoffs occur amid a challenging year for the tech sector, with over 100,000 job cuts reported, surpassing previous years if the trend continues. Companies like Amazon, Block, Cisco, Cloudflare, Meta, Microsoft, and Oracle have similarly reduced their workforce, attributing the need to reallocate resources to AI projects as a reason for job cuts.
Despite substantial revenues and profits reported by these companies due to strong demand for AI products and services, Intuit has underperformed compared to the S&P 500, facing concerns that traditional software-as-a-service firms may struggle to compete with emerging AI technologies.
In its fiscal second quarter ending January, Intuit reported $4.65 billion in revenue, a 17% rise, and $693 million in net profit, a 48% increase year-on-year. The company anticipates a 10% revenue rise in the third quarter, with results to be reported later today.