Intuit cuts 3,000 jobs to pivot resources toward artificial intelligence
The restructuring comes despite strong fiscal second-quarter results, as the company’s shares continue to underperform the broader market amid industry-wide shifts toward AI.
Intuit has announced it will eliminate approximately 3,000 roles, representing 17 per cent of its global workforce, as part of a strategic effort to redirect resources toward artificial intelligence product development. The move, reported by Reuters and cited by TechCrunch, follows an internal memo from CEO Sasan Goodarzi outlining the company’s intent to reduce corporate complexity and streamline its operational structure.
Goodarzi stated that the restructuring is designed to help the company deliver better AI products and focus its engineering efforts more effectively. The decision aligns with a broader trend across the technology sector, where major firms including Amazon, Meta, Microsoft, and Oracle have recently reduced headcounts to reallocate capital toward AI initiatives, despite reporting robust financial performance.
The layoffs occur against a backdrop of significant volatility for Intuit’s stock, which has underperformed the S&P 500 over the past 12 months. This market weakness reflects wider investor concerns that traditional software-as-a-service providers may struggle to compete with emerging AI-driven tools. However, the company’s fundamentals remain strong, with fiscal second-quarter revenue rising 17 per cent to $4.65 billion and net profit increasing by 48 per cent to $693 million.
As of July 2025, Intuit employed 18,200 people worldwide, according to its annual report. The company, which produces popular financial software such as TurboTax, QuickBooks, and Credit Karma, did not immediately respond to requests for comment regarding the layoffs. Questions regarding whether management, directors, or the CEO would accept pay cuts were also not addressed. Goodarzi’s compensation was valued at $36.8 million during fiscal 2025, inclusive of cash incentives and stock awards.
The tech industry has seen more than 100,000 job cuts this year, a figure that Statista suggests may outpace previous years if the current trend continues. Many of these reductions have been attributed to the need for refocusing expenditures on AI infrastructure and products. Intuit is expected to report its third-quarter results later today, with guidance indicating a projected revenue increase of approximately 10 per cent.
