Intuit, the parent company of TurboTax and Credit Karma, has announced plans to lay off 1,800 workers, which accounts for 10% of its workforce. This decision comes as the company looks to integrate more artificial intelligence into its operations.
In a letter to employees, Intuit clarified that the layoffs were not motivated by cost-cutting measures, as they intend to hire 1,800 new employees. However, it has not been specified if the new hires will receive the same pay as those being let go.
“These are extremely difficult decisions for me and my team as we understand the impact they will have on our friends and colleagues who are leaving. We are grateful for their hard work and contributions during their time at Intuit,” said Intuit CEO Sasan Goodarzi in the letter.
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A minimum of 16 weeks’ pay, plus an additional two weeks for each year of service, will be provided to U.S. employees being laid off. They will also receive standard employee healthcare coverage for six months.
In the announcement, Goodarzi stated that 1,050 employees are leaving due to performance issues, and more than 300 roles are being eliminated throughout the company.
The letter also mentions that the company’s workforce is projected to grow by fiscal year 2025, with new hires coming from diverse fields.
“Approximately 1,800 new hires will primarily focus on engineering, product development, sales, customer success, and marketing roles,” said Goodarzi.
Goodarzi emphasized that these changes are necessary for Intuit to leverage AI effectively. He stated, “AI is driving innovation globally at an unprecedented pace, reshaping industries and companies in ways previously unimaginable. Companies that fail to adapt to this AI revolution will lag behind and eventually cease to exist.”
