"Intuit plans to cut about 1,800 employees and shutter two of its worksites in North America as it prepares for a hiring spree in its pivot toward artificial intelligence.
The Mountain View, Calif.-based maker of tax-preparation software said Wednesday that it will lay off about 10% of its workforce and close sites in Boise, Idaho, and Edmonton, Canada, "in service to growing technology teams and capabilities in strategic locations."
Chief Executive Sasan Goodarzi said in a letter to employees that the company is reallocating resources to key growth areas, including artificial intelligence.
Intuit's layoffs aren't about cutting costs, as the company is preparing to hire another 1,800 workers in fiscal 2025, which starts next month, to support its growth objectives, Goodarzi said. The new positions will be largely in engineering, product, and customer-facing roles, including sales and marketing, the CEO said.
"In context of the actions we are taking today, we expect our overall headcount to grow in FY25 and beyond," Goodarzi said.
The job cuts and closures are expected to cost about $250 million to $260 million, which will be largely incurred in the fourth fiscal quarter that ends this month.
The charges include $217 million to $227 million in severance payments and employee benefits, along with about $33 million in noncash charges related to share-based compensation and site closures.
The company said it expects substantially all actions related to the reorganization plan to be completed by its first fiscal quarter ending Oct. 31.
Intuit had about 18,000 employees across 10 countries as of July 2023, according to a regulatory filing.
Shares of Intuit declined 2.6% to $632.84 in Wednesday's trading." [1]
They are trying to hire engineers and announce themselves as some sort of artificial intelligence company, attracting attention to the company's shares.
1. Intuit to Cut Workers Ahead of Pivot to AI. Seal, Dean. Wall Street Journal, Eastern edition; New York, N.Y.. 11 July 2024: B.2.
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