Intuit has reportedly paused hiring at its Credit Karma unit, with all new hiring to be paused but with no pay cuts and with employees who leave continuing to be replaced.
The move came in response to a slowdown in revenue at the personal finance company as consumers face tough times and lending activity slows, Bloomberg reported Tuesday (Nov. 1).
Credit Karma has seen its sales growth slow from 48% in the third fiscal quarter of 2022 to the 10% to 15% projected by the company for fiscal year 2023, according to the report.
In the current macro environment, many tech companies have either paused or reduced their headcount, the report said.
A Credit Karma spokesperson told Bloomberg: “Like most companies, Credit Karma is keeping a close eye on the current economic conditions, and we have gotten more conservative with our hiring,” “We are still hiring for some open roles but this move allows us optionality as a business.”
PYMNTS has reached out to Credit Karma for comment.
An Intuit spokesperson responded to PYMNTS’ inquiry about this report by sharing a link to a Tuesday press release, in which the company reiterated its operating income and earnings per share guidance for fiscal year 2023.
“We also shared that we expect small business and tax to meet our previous revenue guidance for the year, but that Credit Karma experienced further deterioration during the last few weeks of the first quarter,” the spokesperson said in an email. “We will provide more detail when we report earnings on November 29, 2022.”
The press release said that Intuit reported during its most recent earnings call that macro uncertainty has negatively impacted Credit Karma’s verticals.
As PYMNTS reported Aug. 31, the once unstoppable growth of tech companies around the world has been called into question by successive waves of layoffs — and sectors whose strength is tied to consumer confidence have been worst affected.
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