Intuit to cut 1,800 jobs in shift towards AI integration

Tax and financial software company Intuit said it will lay off nearly 10% of its staff in an effort to reorganize with artificial intelligence on Wednesday. According to the company, 1800 workers are expected to lose their jobs.

Also Read: Google initiates layoffs in core developer teams

The company behind the taxation and financial software TurboTax and QuickBooks has said it expects to hire almost the same number of employees as it is laying off during the next year. The company said it will hire people with the required skills to implement its AI plans. The company also clarified that 1000 layoffs are workers who could not meet the company’s expectations.

Intuit will also cut down on executive employees

The company said it is cutting down on its executive employees, with 10% expected to be laid off. In an email to its employees, Intuit CEO Sasan Goodarzi also said it will downsize its workforce by another 300 positions to “streamline work and reallocate resources towards key growth areas.”  

Goodarzi issued a memo titled “Investing in the future,” saying, “We do not do layoffs to cut costs, and that remains true in this case.” He said the layoffs are not part of a cost-reduction strategy. Intuit’s SEC filing states the company expects the total headcount to increase, with the company hiring almost the same number of people by 2025. 

Goodarzi’s email to his staff, starts with saying, “The era of AI is one of the most significant technology shifts of our lifetime.” He continued by saying that companies that will miss out on taking advantage of the AI revolution will be left behind and, “over time, will no longer exist.”

Intuit wants to make room for AI 

The company is also closing its US offices in Idaho and Boise, and in Edmonton, Canada. More than 250 employees work at these offices, some of them will shift to new locations, and some will leave, the company said.

Intuit’s filing shows some of the areas the company will focus on. One of them is its AI-based financial assistant, Intuit Assist. Goodarzi also stated that the company plans to invest in AI and data. He further detailed that the steps taken will help enhance the money solutions and increase company growth overseas.

The company said that it will consolidate 80 tech roles in regions where it is increasing its capabilities and technology teams such as New York, Bangalore, Tel Aviv, Toronto, and Atlanta. The firm also stated that it plans to hire people for its engineering and product departments. More roles will also be available in sales and marketing.

Also Read: Korean employers offer pay raise for higher AI skills

Intuit is following the lead of other tech giants who have also replaced staff to accelerate AI adoption. Last year, Dropbox slashed 500 jobs, which accounted for 16% of its total workforce, as part of its AI development. Dropbox clearly said that job cuts were in an effort to “make room for investments in AI.”

Google, Microsoft, and Buzzfeed have also cited AI for trimming their workforces.

On the other hand, Intuit said, “We’ve significantly raised the bar on our expectations of employee performance,” and 1050 employees will leave the company for not meeting the criteria. However, those who lose their jobs will get similar support whether they are in the US or abroad. The company said they would be given 16 weeks’ pay with other benefits along with consultation for future employment.