Intuit layoffs 1,800 jobs, but company says it will increase headcount this year

Sasan Goodarzi, CEO of the Fortune 500 company, which offers products like QuickBooks, Credit Karma and TurboTax, wrote an internal email to employees, seen by Fortuneannouncing the “very difficult decisions that my management team and I have made.”

Goodarzi says Intuit’s transformation journey, which includes the departure of 1,800 employees, is part of its strategy to increase investments in AI and generative AI priority areas, such as its GenAI-powered financial assistant called Intuit Assist, and to reimagine its products from traditional workflows to AI-native experiences. The strategy also focuses on fund movements, expansion into the mid-market for small businesses and international growth.

“We don’t lay off people to cut costs, and that’s true in this case,” Goodarzi wrote. Intuit plans to hire about 1,800 new employees with strategic functional skills, primarily in engineering, product and customer relations areas such as sales, customer success and marketing. And it expects its overall headcount to grow in its 2025 fiscal year, which begins Aug. 1.

Of the employees leaving Intuit, 1,050 are not meeting expectations based on a formal performance management process. The company believes they “will be more successful outside of Intuit,” Goodarzi wrote. In addition, Intuit is reducing the number of executives (directors, managers, senior vice presidents and executive vice presidents) by about 10 percent, expanding some leadership roles and responsibilities.

Intuit is also consolidating 80 technical positions across locations where it is building technology teams, including Atlanta, Bangalore, New York, Tel Aviv and Toronto. The company is closing two locations in Edmonton and Boise that have more than 250 employees, and a number of those are moving to other locations within Intuit or leaving the company. Intuit is also cutting more than 300 positions across the company to “streamline work and reallocate resources to key growth areas,” according to the email.

All departing U.S. employees will receive a plan that includes a minimum of 16 weeks of pay, plus an additional two weeks for each year of service. They will have 60 days before leaving the company, with the last day being September 9. Employees outside the U.S. will receive similar support, taking into account local requirements.

“This schedule allows all departing employees to reach the July vesting date for restricted stock units and the July 31 eligibility date for annual IPI awards,” Goodarzi wrote. Those without an IPI plan will be able to reach the July or fourth-quarter eligibility date for awards. This is the most generous severance package Intuit has ever offered, according to the company.

“Intuit is in a strong position,” Goodarzi said. The company posted revenue of $14.4 billion in its 2023 fiscal year, moving up 24 spots on the Fortune 500. For the period ending April 30, Intuit reported revenue of $6.7 billion, up 12%.