Intuit cuts 3,000 jobs to refocus on AI
▼ Summary
– Intuit is laying off about 3,000 employees (17% of its staff) to redirect resources toward integrating AI into its products.
– CEO Sasan Goodarzi stated the layoffs aim to simplify the company’s structure and focus on AI efforts.
– The layoffs are part of a broader tech industry trend, with over 100,000 jobs cut this year as companies like Amazon and Meta prioritize AI projects.
– Despite reporting strong fiscal Q2 results—revenue of $4.65 billion and net profit of $693 million—Intuit’s shares have underperformed due to concerns about AI competition.
– Intuit did not respond to questions about executive pay cuts; Goodarzi’s fiscal 2025 compensation was $36.8 million.
Enterprise software company Intuit is cutting approximately 3,000 jobs, representing 17% of its workforce, as part of a strategic push to redirect resources toward artificial intelligence initiatives. The announcement came via an internal memo from CEO Sasan Goodarzi, as first reported by Reuters.
Goodarzi explained that the layoffs are designed to streamline operations by simplifying the company’s corporate structure, allowing Intuit to concentrate more heavily on AI development. The company, known for flagship products like TurboTax, QuickBooks, and Credit Karma, employed roughly 18,200 people globally as of July 2025, according to its most recent annual report.
Intuit did not immediately respond to requests for comment, nor did it address whether its executive team, board members, or CEO would accept reduced compensation. Goodarzi’s total compensation for fiscal 2025 reached $36.8 million, including cash incentives and stock awards.
The cuts arrive during a particularly tough period for the tech workforce. More than 100,000 tech jobs have been eliminated this year alone, according to data from Statista. If the current pace of layoffs continues, 2026 is on track to surpass both 2024 and 2025 in total job losses.
Major technology firms including Amazon, Block, Cisco, Cloudflare, Meta, Microsoft, and Oracle have each shed thousands of employees. All have cited a need to reorganize around AI priorities as a primary reason for restructuring.
Yet paradoxically, many of these same companies have posted strong revenue and profit growth, driven by surging demand for AI products, services, and the infrastructure that powers them. Investor enthusiasm has lifted share prices across the sector, as markets bet that AI will unlock a new era of expansion for software businesses.
Intuit, however, has not been viewed as a clear winner in the AI race. Its stock has consistently underperformed the S&P 500 over the past 12 months. The company has been swept up in broader concerns that traditional software-as-a-service firms may struggle to adapt or compete as next-generation AI tools reshape how software is built and used.
Financially, Intuit remains solid. In its fiscal second quarter, which ended in January, the company posted $4.65 billion in revenue, a 17% increase year-over-year, and net profit of $693 million, up 48% from the same period a year earlier. The company has guided for roughly 10% revenue growth in the third quarter, with results expected later today.
(Source: TechCrunch)
