Intuit is informing about 1,800 employees worldwide (10% of its workforce) that they will leave the company, but management said the move is do not have To reduce costs.
Sasan Gudarji, CEO of the Fortune 500 company whose products include QuickBooks, Credit Karma and TurboTax, wrote in an internal email to employees: luckHe announced “the very difficult decision that I and my leadership team have made.”
Goudarji explained that Intuit’s transformation journey, which includes the departure of 1,800 employees, is part of a strategy to increase investments in priority focus areas of AI and generative AI, such as its GenAI-powered financial assistant called Intuit Assist, and to reimagine its products from traditional workflows to AI-native experiences, which also focus on money movement, expansion into the mid-market for small and medium-sized businesses, and international growth.
“We do not make job cuts to cut costs, and this does not change that,” Goodarzi wrote. Intuit plans to hire about 1,800 new employees, primarily for strategic functional skills in engineering, product and customer-facing roles such as sales, customer success and marketing, and expects its overall employee base to grow in fiscal 2025, which begins Aug. 1.
Of the employees leaving Intuit, 1,050 are not meeting expectations based on a formal performance management process, and the company believes these employees “will be more successful away from Intuit,” Goodarzi wrote. Additionally, Intuit is reducing the number of executives, including directors, SVPs, and EVPs, by about 10% and expanding executive roles and responsibilities.
Intuit is also consolidating 80 technology roles in locations where it is growing its 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 will transfer a number of employees to other locations within Intuit or have them leave the company. Intuit is also eliminating more than 300 positions across the company to “streamline operations and reallocate resources to key growth areas,” according to the email.
All departing U.S. employees will receive a minimum of 16 weeks’ pay, plus two weeks’ pay for each year of service, and will have 60 days to leave, with the final day being September 9. Employees outside the U.S. will be offered similar assistance, taking into account local requirements.
“Those who leave at this time will be eligible for the July vesting date for their restricted stock units and the July 31st eligibility date for their annual IPI bonus,” Goodarge wrote. Those who are not enrolled in the IPI plan will be eligible for either the July or fourth quarter incentives. The company said this is the most generous severance package Intuit has ever offered.
“Intuit is in a strong position,” Goodarzi said. The company is on track to generate $14.4 billion in revenue in fiscal 2023, climbing 24 spots on the Fortune 500. For the period ending April 30, Intuit reported revenue of $6.7 billion, up 12%.
