Intuit, the parent company of TurboTax and Credit Karma, has announced plans to lay off 1,800 workers, which represents 10% of its workforce. The decision is part of the company’s strategy to integrate more artificial intelligence into its operations.
In a letter to employees, Intuit stated that the layoffs are not purely for cost-cutting purposes, as the company intends to hire 1,800 new employees in other areas. However, it has not clarified if the new hires will receive the same compensation as those being laid off.
“These decisions have been extremely difficult for me and my team, as we understand the impact on our departing friends and colleagues. We are grateful for their hard work and contributions to Intuit,” said Intuit CEO Sasan Goodarzi in the letter.
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Employees in the U.S. who are being laid off will receive a minimum of 16 weeks of pay, with additional weeks based on their years of service. They will also be provided with standard health care coverage for six months.
In the announcement, Goodarzi mentioned that 1,050 employees are being let go due to performance issues. Additionally, over 300 roles across the company will be eliminated.
The letter also outlined plans for the workforce to expand by fiscal year 2025, with new hires coming from different sectors such as engineering, product development, sales, customer success, and marketing.
“We will be bringing in around 1,800 new employees to support our growth in areas such as engineering, product development, and customer-facing roles. These changes are essential as we increasingly rely on artificial intelligence,” Goodarzi explained.
He emphasized that embracing AI is crucial for staying competitive in the rapidly evolving business landscape. Companies failing to adapt to the AI revolution risk falling behind and eventually ceasing to exist.
