Another 250 Intuit employees have been laid off — mostly from the Small Business Group — according to an internal memo from CEO Brad Smith, reviewed by TechCrunch. That follows a mass layoff of almost 400 employees (roughly 5 percent of its staff) in June of this year.
The layoffs are in the midst of a corporate realignment after its earnings call last week. Intuit further announced it was divesting Demandforce, QuickBase and Quicken, among other business units.
While layoffs are not uncommon as businesses chart their course, Intuit has been hit hard by perceived difficulty along the path. Following last week's earnings call, the firm saw its shares drop hard. It also made a 20 percent increase in its cash dividend.
“In 2013, we kicked off a multi-year change journey designed to sharpen Intuit’s focus on and investment in businesses that strengthen the Intuit ecosystem and align with two strategic goals: to be the operating system behind small business success and to do the nations’ taxes in the U.S. and Canada. Today, we communicated organizational changes that continue to drive our transformation,” a spokesperson for Intuit said. “Unfortunately, this included some reductions to our staff to ensure we’re structured appropriately and aligned with our priorities. We have great confidence in our strategy, our execution and our trajectory as we build this company for the long term. These are tough choices, but we believe these are the right moves for a company that’s built to last and focused on the future.”
Prior to the company’s earnings report, Intuit stock was up 28 percent on the year, making the company worth more than $28 billion based on its market cap. Post-earnings report, it is down to a market cap of $22 billion.