Intuit CEO Sasan Goodarzi speaks during the opening night ribbon cutting ceremony at Intuit Dome on August 15, 2024 in Los Angeles.
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Tax/finance software maker intuition announced Wednesday that it will cut 17% of its full-time workforce. It’s the latest tech company to announce major layoffs amid the artificial intelligence boom. Shares fell 11% in extended trading.
The decision will affect more than 3,000 people, based on the company’s last reported workforce of 18,200. Intuit said the restructuring is expected to result in costs of $300 million to $340 million, primarily in the current quarter.
“Looking to the future, we are building an organization that will further expand our growth engine and operate faster to deliver sustained long-term growth,” Intuit CEO Sasan Goodarzi said in a statement.
Intuit, the maker of QuickBooks and TurboTax, has taken a hit from investors this year along with a broader decline in the software market as Wall Street worries about AI displacing some products and services from incumbent companies. Intuit stock is down more than 40% since the beginning of the year, while the S&P 500 is up about 8%.
zoom info and content delivery network providers cloudflare Earlier this month, both companies announced they would cut 20% of their workforces. Cisco announced last week that it would cut fewer than 4,000 jobs this quarter, or less than 5% of its workforce. on wednesday Meta Plans were made to lay off 8,000 people.
In addition to announcing job cuts, Intuit reported earnings on Wednesday. The company ended its third quarter with adjusted earnings of $12.80 per share on revenue of $8.56 billion for the period ended April 30, after the tax filing deadline. Analysts polled by LSEG had expected earnings of $12.57 per share and revenue of $8.61 billion.
Sales increased 10% year-over-year, the slowest expansion rate for any period since 2024. Net income increased approximately 9% to $3.06 billion.
Intuit has revised its fiscal year 2026 forecast upward. The company now expects adjusted earnings per share to be in the range of $23.80 to $23.85 and revenue in the range of $21.34 billion to $21.37 billion. LSEG consensus was for earnings of $23.21 per share and revenue of $21.23 billion.
“We believe that by reducing complexity, simplifying our organization, and becoming a faster, leaner, and more focused company, we can serve more customers and deliver breakthrough products that drive customer success,” Goodarzi wrote in a memo to employees.
Goodalji told employees that the company has too many layers of management and will be closing its offices in Reno, Nevada and Woodland Hills, California, and physically bringing teams together to increase collaboration. After integrating TurboTax and Credit Karma, Intuit is eliminating duplicate roles and plans to exit the Mailchimp business, Goodarzi wrote.
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