Intuit is set to let go of 1,800 of its global employees, representing 10 per cent of its workforce. In an internal email seen by Fortune, Sasan Goodarzi, CEO, Intuit, detailed the challenging decisions made by the leadership team.
The letter explained that this transition is part of Intuit’s strategic transformation to enhance investments in AI and generative AI. This includes developing the GenAI-powered financial assistant, Intuit Assist, and reimagining its products to be AI native. The strategy also targets improvements in money movement, mid-market expansion for small businesses and international growth.
However, the company stated that the move is not aimed at cost cutting. As per the company’s statement, of the employees set to leave, 1,050 are not meeting expectations based on a formal performance- management process. Intuit believes these individuals will find greater success outside the company.
Furthermore, it plans to recruit around 1,800 new employees with strategic functional skills, particularly in engineering, product development and customer-facing roles such as sales, customer success and marketing.
Departing US employees will receive a severance package that includes a minimum of 16 weeks of pay, plus an additional two weeks for every year of service. They will have 60 days before their final day on 9 September. Employees outside the US will receive similar support, adjusted for local requirements.
Additionally, the company expects its overall headcount to increase in fiscal year 2025, starting 1 August, 2024.
Intuit is also reducing its number of executives—directors, SVPs and EVPs—by about 10 per cent, while expanding certain executive roles and responsibilities. The company is also consolidating 80 tech roles to locations where technology teams are growing, including Atlanta, Bangalore, New York, Tel Aviv and Toronto.
Two sites in Edmonton and Boise, which together employ over 250 people, will be closed, with some employees relocating within Intuit and others departing. Furthermore, more than 300 roles across the company are being eliminated to streamline work and reallocate resources towards key growth areas.
