TurboTax-parent Intuit to lay off about 1,800 jobs, or 10% of the workforce, as the company shifts focus to AI

TurboTax parent company Intuit announced on Wednesday it’s laying off about 1,800 employees, or 10% of its workforce. This move comes as the company aims to reallocate resources to other critical areas including artificial intelligence.

In recent years, Intuit has heavily invested in generative AI-powered accounting and tax preparation tools tailored for small and medium-sized businesses. As part of its strategic shift, the company plans to close its sites in Edmonton, Canada, and Boise, Idaho.

“Today we will be communicating to approximately 1,800 employees, which is 10% of our workforce, that they will be leaving Intuit. These are extremely painful decisions for me and my team because we deeply understand the impact these decisions have on our friends and colleagues who will be leaving. We are very grateful for the great work they have done and the amazing contributions they have made while at Intuit,” CEO Sasan Goodarzi said in a note to employees.

Despite the layoffs, Goodarzi said that Intuit will hire 1,800 new employees, focusing on engineering, product, and customer-facing roles. Additionally, 300 positions are being eliminated to streamline operations.

“As I’ve shared many times, the era of AI is one of the most significant technology shifts of our lifetime. This is truly an extraordinary time – AI is igniting global innovation at an incredible pace, transforming every industry and company in ways that were unimaginable just a few years ago. Companies that aren’t prepared to take advantage of this AI revolution will fall behind and, over time, will no longer exist,” Goodarzi added.

According to a regulatory filing, the layoffs are projected to cost Intuit between $250 million and $260 million, with most of these expenses expected to impact the company’s fourth-quarter financials.

Intuit is the latest in a series of tech companies to announce staff cuts. In recent months, tech companies, crypto exchanges, financial firms, and banks have reduced their headcount and slowed hiring as global economic growth weakens due to looming recession, inflation, and higher interest rates.