Intuit to cut about 1,800 jobs as it looks to increase AI investments

Intuit will rehire 1,800 new people primarily in engineering, product and customer-facing roles, CEO Sasan Goodarzi said in a note to employees.

The company, whose shares fell 3.6%, did not provide a timeline for the fresh hiring.

“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.

Intuit, which also makes online accounting software QuickBooks, said it will increase investments in generative AI and plans to expand into new markets including Canada, the United Kingdom and Australia.

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.

Intuit expects to grow headcount in fiscal 2025 and beyond, Goodarzi said.

In May, Intuit reported a rise in third-quarter revenue and increased it annual forecasts expecting a boost in demand for its AI-integrated products.