Intuit cuts 17% of workforce to accelerate AI restructuring

Intuit, the maker of TurboTax, QuickBooks, and Credit Karma, is laying off approximately 3,000 employees, or about 17% of its global workforce, Reuters reported. In a blog post, Chairman and CEO Sasan Goodarzi explained the layoffs an effort to restructure its operations to concentrate resources on artificial intelligence

In his note to staff, Goodarzi framed the cuts as a structural necessity. "We believe we can serve more customers and deliver breakthrough products that fuel our customers' success by reducing complexity and simplifying our structure to become a faster, leaner, and more focused company," he wrote.

He acknowledged the human cost of the decision directly: "These are valued colleagues and friends who have been vital to shaping the company we are today. Saying goodbye is never easy, and I want to acknowledge the weight this news carries for all of us."

Intuit had about 18,200 employees in seven countries as of July 31, 2025, according to the company's annual report. The last day for impacted US staff will be July 31. Departing employees will receive 16 weeks of base pay plus two additional weeks for every year worked at the company. The company will also provide at least six months of health insurance support and access to career transition services.

Goodarzi outlined several structural changes driving the cuts. The company is reducing management layers, eliminating coordination-heavy roles, and co-locating teams in strategic hubs, a move that includes winding down its Reno and Woodland Hills offices. It is also cutting overlapping roles following the integration of TurboTax and Credit Karma, and scaling back investment in Mailchimp.

The overarching goal, Goodarzi said, is to move faster on three strategic priorities: scaling an AI-native platform to deliver automated, personalised experiences; becoming the central financial platform for consumers and businesses; and deepening its push into the mid-market.

"We must move with far greater velocity, urgency, and discipline," he wrote.

The company has signed multi-year deals with AI startups Anthropic and OpenAI to embed their models into Intuit's software, and to integrate Intuit's tax, finance, accounting, and marketing capabilities into Claude and ChatGPT.

Intuit joins a growing list of tech companies reducing headcount while citing AI-driven restructuring. Amazon, Block, Cisco, Cloudflare, Meta, Microsoft, Oracle, and Bird have each let go of thousands of employees, all pointing to the need to redirect spending toward AI projects. The tech industry has already cut more than 100,000 jobs in 2026, according to Statista, and is on pace to exceed the totals from both 2024 and 2025.

Intuit's shares fell nearly 5% in morning trading on the day of the announcement. The company has faced sustained pressure from investors, with its stock consistently underperforming the broader S&P 500 over the past year amid concerns that traditional software-as-a-service firms will struggle to compete as AI reshapes both how software is built and how it is used.

Despite the stock slide, Intuit's recent financials remain solid. In its fiscal second quarter ended January 2026, the company reported revenue of $4.65 billion, a 17% increase year-on-year, and net profit of $693 million, up 48% from the same period a year earlier.

Goodarzi closed his note to employees on a forward-looking note: "We have a once in a lifetime opportunity and a lot of important work ahead of us to power economic growth for those we serve."