Intuit To Lay Off 1,800 Employees To Accelerate AI Ambitions
Out of these, over 1,000 employees being let go were not meeting the company's heightened performance expectations
US-based fintech firm Intuit has announced plans to lay off 10 per cent of its workforce. In a letter to employees, CEO Sasan Goodarzi emphasised that the layoffs are not intended as a cost-cutting measure. "We do not do layoffs to cut costs, and that remains true in this case," Goodarzi explained. "The changes we are making today enable us to allocate additional investments to our most critical areas to support our customers and drive growth."
Goodarzi stated that over 1,000 employees being let go were not meeting the company's heightened performance expectations. "We’ve significantly raised the bar on our expectations of employee performance, resulting in approximately 1,050 employees leaving the company who are not meeting expectations and who we believe will be more successful outside of Intuit," he said.
In addition, Intuit is eliminating more than 300 roles across the company to streamline operations and reallocate resources toward key growth areas. All affected US employees will receive a severance package that includes a minimum of 16 weeks of pay, plus two additional weeks for every year of service. They will have 60 days before their final day at the company on 9 September 2024.
Goodarzi also mentioned that Intuit is consolidating 80 technology roles to locations where it is expanding teams and capabilities, including Atlanta, Bangalore, New York, Tel Aviv and Toronto.
In line with many other tech companies, Intuit aims to accelerate its investments in data and AI. The company plans to transform its products from traditional workflows to AI-native experiences that save time, reduce work, and increase customer savings. "We are accelerating our hiring of top engineering talent across the technology ecosystem to support these investments," Goodarzi added.
