WASHINGTON – Tax preparation and financial software company Intuit on Wednesday announced a reorganization plan focused on AI that calls for shedding about 10% of its workforce.
The company behind QuickBooks and TurboTax announced it will lay off 1,800 employees, but expects to rent not less than that many in fiscal 2025 because it increases its give attention to incorporating artificial intelligence into its services.
In an email to employees, CEO Sasan Goodarzi said greater than 1,000 of those laid off had not met the corporate's high expectations.
An extra 300 jobs could be cut “to streamline operations and reallocate resources to key growth areas,” the e-mail said.
Mountain View-based Intuit will even close offices in Boise, Idaho, and Edmonton, Alberta, Canada, where greater than 250 people work. Some of those employees will likely be relocated to recent locations, the corporate said.
As for severance pay, Intuit said all laid-off U.S. employees would receive not less than 16 weeks of pay plus two additional weeks for annually of service and “at least” six months of medical health insurance coverage. U.S. employees got 60 days' notice, with the notice period ending September 9.
Intuit estimated in a filing with regulators that the reorganization plan will lead to costs of between $250 million and $260 million, most of which will likely be incurred within the fourth fiscal quarter, which ends July 31.
Intuit shares fell 3.6% to $626.29 per share in morning trading.
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