Downward angle icon Downward angle icon. In an SEC filing made public Wednesday, Intuit CEO Sasan Goodarzi wrote in a letter to employees that 1,050 of the 1,800 job cuts were due to employees not meeting expectations. Justin Sullivan/Getty Intuit CEO wrote in an email to employees that 1,050 of the 1,800 job cuts were due to employees not meeting expectations. The company plans to hire roughly equal numbers of employees in engineering and pull-cut roles. The company is moving forward with a restructuring plan to focus on “key growth areas” such as AI.
Intuit said Wednesday it was cutting 1,800 employees, including 1,050 who were not meeting expectations, according to an email from its CEO.
“We have significantly raised the bar on our employee performance expectations,” the CEO wrote in an email attached to the SEC filing.
Intuit CEO Sasan Goodarji added in an email that the company believes employees would be more successful elsewhere, according to the report. Intuit did not respond to a request for comment.
The company is also reducing its leadership staff by about 10% and laying off 300 employees “to streamline operations and reallocate resources to key growth areas,” the email said. The tax preparation software company, whose products include Credit Karma and TurboTax, is moving forward with a “restructuring” plan to focus on those areas, according to an SEC filing.
The CEO pointed out in an email that the job cuts were not a cost-cutting measure — in fact, the company plans to “employ approximately the same number of employees in fiscal year 2025” and expects its overall workforce to grow, the filing said.
“We do not engage in job cuts to save costs, and this case is no different,” Goodarge said in the letter.
Key areas include Intuit Assist, an AI-powered assistant, according to the filing. The CEO also outlined plans to invest in data and AI, accelerate financial solutions, and expand international growth, the filing details. The company is consolidating 80 tech roles across locations including Tel Aviv, Toronto, and Bangalore, with a growing tech team.
The CEO said in an email that “the era of AI is one of the most significant technology shifts in our lifetimes,” and that companies that don’t embrace it will be left behind. Intuit plans to hire for engineering, product, and customer-facing roles such as sales and marketing, according to the filing.
Intuit isn’t the only company making staffing changes because of advances in AI: Many tech companies are doing the same, with CEOs of companies like Google, Microsoft, and Dropbox citing AI as a reason for staff cuts.
The job cuts could cost the company up to $260 million, including severance, employee benefits, stock-based compensation and costs related to site closures, though these estimates are subject to change, the company noted in the filing.
Laid-off U.S. employees will receive a minimum of 16 weeks’ pay, plus two weeks’ pay for each year of service. Employees have 60 days to terminate their employment with Intuit, and international employees will receive similar support, subject to local requirements.
“This timing allows all departing employees to have their restricted stock unit vesting date in July and their annual IPI bonus eligibility date of July 31,” Goodarge said in an email.
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