Enterprise software program big Intuit is letting go 17% of its employees, or about 3,000 folks, because it seeks to divert sources in direction of baking in AI into its merchandise, Reuters reported, citing an inside memo despatched to staff.
The memo by CEO Sasan Goodarzi stated the layoffs are supposed to scale back complexity by simplifying the corporate’s company construction and assist it concentrate on AI efforts, in response to Reuters.
The corporate, which makes accounting, tax and private finance software program like TurboTax, QuickBooks, and Credit score Karma, had 18,200 staff worldwide as of July 2025, in response to its annual report.
Intuit didn’t instantly return a request for remark, or reply to questions on whether or not its administration, administrators, or its CEO would take a pay reduce. Goodarzi’s salary was price $36.8 million, together with money incentives and inventory awards, throughout fiscal 2025.
The layoffs come throughout a nasty 12 months for the tech workforce. The tech trade has already reduce greater than 100,000 jobs this 12 months, per Statista, and is on monitor to outpace each 2024 and 2025 if the layoff development continues.
Corporations similar to Amazon, Block, Cisco, Cloudflare, Meta, Microsoft and Oracle have let go of hundreds of staff every, all echoing one different in citing a must refocus expenditures round AI tasks as a cause to chop jobs and restructure their organizations.
On the similar time, all of those firms have not too long ago reported robust revenues and earnings, citing the obvious robust demand for AI merchandise, providers, or the infrastructure to energy AI. Almost all these firms’ share costs have risen, too, as buyers guess that AI will function a brand new avenue of progress for software program firms in all places.
Intuit, nevertheless, hasn’t been perceived as a beneficiary of the AI increase, with its shares constantly underperforming the broader S&P 500 over the previous 12 months. The corporate has been caught up within the broader current of worries that conventional software-as-a-service corporations won’t be able to maintain up or compete, as new and upcoming AI services threaten to each change how software program is developed and the way it’s used.
In its fiscal second quarter ended January, Intuit reported income of $4.65 billion, a 17% enhance, and internet revenue of $693 million, a 48% enchancment in comparison with a 12 months earlier.
The corporate expects income to extend by about 10% within the third quarter, for which it would report outcomes later at the moment.
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