Intuit, the parent company of TurboTax and Credit Karma, has announced plans to lay off 1,800 workers, which represents 10% of its workforce. This decision comes as the company looks to incorporate more artificial intelligence into its operations.
In a letter to employees, Intuit emphasized that the layoffs were not a cost-cutting measure, as the company intends to hire 1,800 new employees. It was not disclosed whether the new hires would be compensated at the same rate as the departing employees.
“These are extremely difficult decisions for us as we deeply recognize the impact on our departing friends and colleagues. We are grateful for their hard work and contributions during their time at Intuit,” stated Intuit CEO Sasan Goodarzi in the letter.
RELATED STORY | Halfway through the year, video game layoffs already surpass 2023 numbers
Employees in the U.S. who are laid off will receive a minimum of 16 weeks of pay, with an additional two weeks for each year of service. They will also have access to standard employee healthcare for six months.
In the announcement, Goodarzi stated that 1,050 employees are being let go due to performance concerns, and more than 300 roles across the company are being eliminated.
The letter mentioned that the company expects the workforce to grow by fiscal year 2025, with new hires coming from various fields like engineering, product development, sales, customer success, and marketing.
“This is an exceptional time where AI is driving rapid global innovation, transforming industries and companies in unprecedented ways. Businesses that fail to embrace this AI revolution will fall behind and eventually cease to exist,” Goodarzi emphasized.
