Approximately 1,050 employees identified as not meeting performance expectations may be 'more successful outside of Intuit'
CEO Sasan Goodarzi emphasizes investment in priority focus areas like AI-powered financial assistant called Intuit Assist
Intuit announces layoffs of 1,800 employees
Intuit plans to hire approximately 1,800 new employees with strategic functional skill sets primarily in engineering, product, and customer-facing roles
Layoffs not for cost-cutting purposes but to invest in AI and hire new talent
Software company Intuit announced plans to lay off approximately 1,800 employees, representing about 10% of its global workforce. The cuts are not for cost-cutting purposes but rather to invest more in artificial intelligence (AI) and generative AI technologies. Of the employees being let go, around 1,050 were identified as not meeting performance expectations through a formal process and may be 'more successful outside of Intuit.' Intuit also plans to reduce the number of executives by approximately 10% and consolidate 80 tech roles to sites where it is expanding technology teams. The company expects its overall headcount to grow in fiscal year 2025. All departing U.S. employees will receive a generous severance package, including a minimum of 16 weeks of pay, plus two additional weeks for every year of service.
Intuit's CEO Sasan Goodarzi made the announcement in an internal email to employees and emphasized that the move is part of Intuit's strategy to increase investments in priority focus areas, such as its AI-powered financial assistant called Intuit Assist. The company also plans to hire approximately 1,800 new employees with strategic functional skill sets primarily in engineering, product, and customer-facing roles.
Intuit is a leading provider of business and financial management solutions for small businesses, consumers, and accounting professionals. Its products include QuickBooks, Credit Karma, TurboTax, and Mailchimp. The company reported revenue of $14.4 billion in its fiscal year 2023 and earned the 57th spot on the Fortune 500 list.
Intuit is laying off 1,800 employees, which is 10% of its workforce.
The layoffs are not for cost-cutting purposes but to invest more in AI and generative AI technologies.
Of the employees being laid off, 1,050 are not meeting expectations based on a formal performance management process and may be ‘more successful outside of Intuit’.
Accuracy
Intuit is laying off 1,800 employees.
Approximately 1,800 new people will be hired in strategic roles.
Intuit was ordered by the Federal Trade Commission to end marketing of TurboTax as free for all customers due to deceptive practices
Accuracy
Intuit to lay off 1,800 employees
Two worksites in Boise, Idaho and Edmonton, Canada will be closed
Intuit expects to incur up to $260 million in layoff costs and $33 million in non-cash charges for share-based compensation and site closures
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains a few informal fallacies and an example of inflammatory rhetoric. It uses an exaggerated description of the company's focus shift as a 'pivot to AI', which can make it seem more drastic than it actually is. Additionally, there is an example of inflammatory rhetoric when referring to Intuit's past marketing practices as 'deceptive'.
The changes we are making today enable us to allocate additional investments to our most critical areas to support our customers and drive growth.
Intuit will be making the AI pivot, but it will be looking to maintain its core customers made up of small and medium-sized businesses.
Intuit bought the former TSheets business in 2018 and pivoted the Eagle site to service a number of its software products, including the broader QuickBooks library of programs and others.
Intuit will pay between $250 million and $260 million in severance and other costs.
About 80 roles will be relocated to other sites, including Atlanta, Bengaluru, India and Tel Aviv, Israel.
New hiring will start in fiscal year 2025.
Accuracy
The cuts represent about 10% of the company workforce.
Intuit bought the former TSheets business in 2018 and pivoted the Eagle site to service a number of its software products.
