Intuit to lay off over 3,000 employees to refocus on AI
TechCrunch • • business
Key Points:
- Intuit is cutting 17% of its workforce, approximately 3,000 employees, to simplify its corporate structure and focus on integrating AI into its products, according to an internal memo from CEO Sasan Goodarzi.
- The layoffs reflect a broader tech industry trend where major companies like Amazon, Meta, and Microsoft are reducing staff to reallocate resources toward AI development, despite reporting strong revenues and profits.
- Intuit, known for products like TurboTax and QuickBooks, has underperformed in the stock market compared to peers benefiting from the AI boom, raising concerns about its ability to compete amid rapid AI-driven changes in software.
- In its fiscal second quarter ending January, Intuit posted $4.65 billion in revenue, a 17% increase, and a 48% rise in net profit to $693 million, with expectations of about 10% revenue growth in the upcoming quarter.