Mountain View, CA – Intuit, a leading Fortune 500 company known for its products like QuickBooks and TurboTax, announced a significant restructuring that will result in approximately 1,800 global employees—10% of its workforce—leaving the company. Despite the large-scale departures, CEO Sasan Goodarzi emphasized that this decision is not driven by cost-cutting measures.
The restructuring is part of Intuit’s strategy to prioritize investments in areas such as AI and generative AI, with a focus on enhancing products like the GenAI-powered financial assistant, Intuit Assist. Additionally, the company aims to expand its offerings in money movement, mid-market solutions for small businesses, and international growth.
Goodarzi clarified that the decision to reduce the workforce is not aimed at reducing costs, as Intuit plans to bring in approximately 1,800 new employees with specialized skill sets in engineering, product development, and customer-facing roles. This move is expected to contribute to the company’s overall growth as it looks ahead to its fiscal year 2025, commencing on August 1.
Of the employees departing from Intuit, 1,050 were identified as not meeting performance expectations through a formal evaluation process. Goodarzi expressed confidence that these individuals may find greater success elsewhere. The company also announced a reduction in the number of executive positions by approximately 10%, along with updates to certain roles and responsibilities.
Additionally, Intuit is consolidating certain technology roles to specific locations with growing technology teams, such as Atlanta, Bangalore, New York, Tel Aviv, and Toronto. The company will be closing down sites in Edmonton and Boise, relocating some employees to other locations within Intuit or facilitating their exit. Over 300 roles across the company will be eliminated to streamline operations and refocus resources on key growth areas.
Departing employees in the U.S. will receive a comprehensive severance package, which includes at least 16 weeks of pay and additional compensation based on years of service. These individuals will have a 60-day transition period before their departure, with a designated final day of September 9. Similar support will be extended to employees outside the U.S. according to local regulations.
Despite the organizational changes, Goodarzi reiterated Intuit’s strong position, highlighting the company’s recent revenue growth and rise in the Fortune 500 rankings. In its fiscal year 2023, Intuit reported revenue of $14.4 billion, reflecting a 12% increase in revenue for the period ending April 30. The company’s strategic realignment aims to position Intuit for continued success and innovation in the competitive market landscape.