PYMNTS MonitorEdge May 2024

Intuit Cuts 10% of Staff Amid New AI Efforts

Intuit

Tax preparation software maker Intuit is cutting 1,800 jobs, or 10% of its workforce, and closing two locations.

The company, parent of QuickBooks and TurboTax, revealed the planned layoffs in a filing with the Securities and Exchange Commission Wednesday (July 10), saying it plans to “hire a nearly equivalent number of employees in fiscal 2025 to support [its] declared growth areas and expects overall headcount to grow.”

In a note to employees included in the filing, CEO Sasan Goodarzi said the cuts come as Intuit is upping its investments in artificial intelligence.

“We were early to bet on and invest in AI, building one of the largest AI-driven expert platforms to fuel the success of consumers, small and mid-market businesses, and important partners like accountants, financial institutions and marketing agencies who rely on us daily to prosper,” Goodarzi wrote. “With the introduction of GenAI, we are now delivering even more compelling customer experiences, increasing monetization potential and driving efficiencies in how the work gets done within Intuit.”

The company’s future hires will be in “engineering, product and customer-facing roles such as sales, customer success and marketing,” he added in the note.

Intuit is also closing its plants in Edmonton, Ontario, and Boise, Idaho, the filing said.

Intuit last month announced its new AI-powered “revenue intelligence” technology, which uses what it called “always-on” predictive and generative AI models.

The system is intended to proactively give marketers opportunities to win more business by recommending optimal times to target customers and generating personalized content, the company said.

“Intuit’s move is the latest example of a technology company tapping AI to try to make its products more useful and attract customers,” PYMNTS wrote at the time. “AI has been one of the hottest areas of technology investment in recent years as startups and big companies alike race to capitalize on its potential to automate tasks and provide new insights from data.”

The company said in May that it was leaning on AI to help its small business clients.

“The era of AI is one of the most significant technology shifts in our lifetime, and our strategy to be the global AI-driven expert platform is delivering significant benefits to our customers and strong results across the company,” Goodarzi said at the time. “I’m proud of our innovation and performance, and because of our momentum, we are raising Intuit’s revenue, operating income and earnings per share guidance for the fiscal year.”

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