Intuit Layoffs: Firm Targets Low Performers In 10% Workforce Reduction

Intuit Layoffs: The company is also trimming its executive ranks by around 10 per cent to enhance its "velocity of decision making"

Intuit Layoffs: IT firm Intuit plans to reduce its workforce by 1,800 employees, aiming to replace underperformers and executives with new hires focused on enhancing products powered by artificial intelligence.

In a communication to employees on Wednesday, CEO Sasan Goodarzi disclosed that approximately 10 per cent of the company's global workforce would be impacted. He clarified that cost-cutting measures do not drive the initiative and anticipates re-hiring a similar number of employees, primarily in engineering, product development, and sales divisions, Bloomberg reported.

More than 1,000 employees being laid off who "are not meeting expectations," Goodarzi stated in the letter. The company is also trimming its executive ranks by around 10 per cent to enhance its "velocity of decision making."

“The changes we are making today enable us to allocate additional investments to our most critical areas to support our customers and drive growth,” Goodarzi said in the letter, as per the report.

Goodarzi underscored Intuit’s commitment to advancing generative AI in his communication, emphasising the company's core focus on small- and medium-sized business clientele. Additionally, Intuit plans to enhance its fintech capabilities by recruiting more talent for its Credit Karma division, which is known for loan aggregation and financial tracking services.

Intuit will shut offices in Edmonton, Canada and Boise, Idaho, as part of its restructuring efforts while consolidating specific technology roles in larger hubs. The company also plans to accelerate its expansion efforts in Canada, the UK, and Australia, states the report.

Intuit disclosed in a filing with the US Securities and Exchange Commission on Wednesday that it anticipates incurring costs between $250 million and $260 million due to the workforce reduction, primarily related to severance payments.

Technology firms have seen a significant increase in layoffs post-pandemic, displaying greater agility in changing priorities and letting go of employees. The list includes some of the major tech giants like Google, Meta, Tesla, Amazon and More.