Intuit plans to cut about 3,000 jobs, affecting 17% of its global workforce, and the change has raised concerns for businesses that use Mailchimp. Mailchimp is not being shut down, but Intuit is scaling back investment in the email marketing product. Intuit CEO Sasan Goodarzi stated that the company is reducing investments in areas including Mailchimp and streamlining engineering and product organizations. Intuit explored selling Mailchimp but could not find a buyer at an acceptable price in the current equity and debt environment. The product is being run to maximize cash flow and profitability rather than to drive growth. This shift changes expectations for marketers relying on Mailchimp.
"Intuit purchased Mailchimp for $12 billion, it was at the center of the company's small-business strategy. Now, it's scaling back on the email marketing solution. In a memo to employees published on the Intuit blog, Intuit CEO Sasan Goodarzi said the company is "reducing investments in areas including Mailchimp, and streamlining our engineering and product organizations.""
""We believe that Mailchimp's revised cash flow profile will generate more value for Intuit than a third party is likely to pay for that asset in the current equity and debt environment for software." CFO Sandeep Aujla added: "The terms of revenue you can get from a third party just are not there right now. That is what we are making sure we are running this for profitability.""
"Translation: Intuit explored selling Mailchimp and couldn't find a buyer at an acceptable price. It is now running the product to maximize cash flow rather than grow it. In a statement to MarTech, Intuit communications representative Kate Arora confirmed the direction: "As part"
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