Intuit to Lay Off Thousands Amid AI Shift

The tech giant is making significant cuts to its workforce, aiming to simplify its corporate structure and focus on developing AI-enhanced products.

Enterprise software giant Intuit is letting 17% of its staff go, or about 3,000 people, as it seeks to divert resources toward baking AI into its products, Reuters reported, citing an internal memo sent to employees. The memo by CEO Sasan Goodarzi said the layoffs are meant to reduce complexity by simplifying the company's corporate structure and help it focus on AI efforts, according to Reuters.

The company, which makes accounting, tax, and personal finance software like TurboTax, QuickBooks, and Credit Karma, had 18,200 employees worldwide as of July 2025, according to its annual report. Intuit did not immediately return a request for comment, or respond to questions about whether its management, directors, or its CEO would take a pay cut. Goodarzi's salary was worth $36.8 million, including cash incentives and stock awards, during fiscal 2025.

The layoffs come during a bad year for the tech workforce. The tech industry has already cut more than 100,000 jobs this year, per Statista, and is on track to outpace both 2024 and 2025 if the layoff trend continues. Companies such as Amazon, Block, Cisco, Cloudflare, Meta, Microsoft, and Oracle have let go of thousands of employees each, all of them citing a need to refocus expenditures around AI projects as a reason to cut jobs and restructure their organizations.

At the same time, all of these companies have recently reported strong revenue and profit, citing the apparent strong demand for AI products, services, or the infrastructure to power AI. Nearly all these companies' share prices have risen, too, as investors bet that AI will serve as a new avenue of growth for software companies everywhere.

Intuit, however, hasn't been perceived as a beneficiary of the AI boom, with its shares consistently underperforming in the broader S&P 500 over the past 12 months. The company has been caught up in the broader current of worries that traditional software-as-a-service firms will not be able to keep up or compete, as new and upcoming AI products and services threaten to change how software is developed and how it is used.

In its fiscal second quarter ended January, Intuit reported revenue of $4.65 billion, a 17% increase, and net profit of $693 million, a 48% improvement compared to a year earlier. The company expects revenue to increase by about 10% in the third quarter, for which it will report results later today.

The layoffs are a significant step for Intuit as it seeks to adapt to the rapidly changing tech landscape. By simplifying its corporate structure and focusing on AI efforts, the company aims to stay competitive in the market.

The Broader Context

The tech industry has been undergoing significant changes in recent years, with many companies shifting their focus to AI and related technologies. This trend is expected to continue, with AI playing an increasingly important role in software development and deployment.

• The tech industry has already cut more than 100,000 jobs this year, per Statista.
• Companies such as Amazon, Block, Cisco, Cloudflare, Meta, Microsoft, and Oracle have let go of thousands of employees each, citing a need to refocus expenditures around AI projects.
• Nearly all these companies' share prices have risen, too, as investors bet that AI will serve as a new avenue of growth for software companies everywhere.

The Future of Intuit

The layoffs at Intuit are a significant step in the company's efforts to adapt to the changing tech landscape. By simplifying its corporate structure and focusing on AI efforts, Intuit aims to stay competitive in the market. The company's future success will depend on its ability to execute on its AI strategy and deliver value to its customers.

• Intuit's revenue is expected to increase by about 10% in the third quarter.
• The company has reported strong revenue and profit growth in its fiscal second quarter ended January.
• Intuit's shares are expected to rise as investors bet on the company's ability to adapt to the AI boom.