Intuit layoffs today: Stock takes a dive as company cuts 17% of jobs, citing AI acceleration

Intuit plans to eliminate about 3,000 jobs, representing 17% of its global workforce of roughly 18,200 employees. The company will focus on accelerating the integration of AI across its operations and services while streamlining operations. Intuit is also reportedly closing key hubs in Reno, Nevada and Woodland Hills, California. Impacted workers have July 31 as the last day, and they are expected to receive a severance package that includes 16 weeks plus two additional weeks for each year of employment. The layoffs occur ahead of Intuit’s third-quarter earnings report and amid broader tech and retail job cuts. Intuit shares fell after the announcement, despite strong recent quarterly results.

"Intuit plans to axe 17% of its workforce, about 3,000 of its approximately 18,200 global employees (as of July 31, according to its annual report), Reuters reported Wednesday. The company said it will focus on accelerating integrating AI across the company and its services, while streamlining operations."

"In an effort to restructure and streamline, Intuit is also reportedly closing key hubs in Reno, Nevada and Woodland Hills, California. The memo cites July 31 as the last day for impacted workers, who will reportedly receive a severance pay package that includes 16 weeks, plus two additional weeks for each year of employment."

"The move comes just hours before Intuit is due to report third-quarter earnings following Wednesday's closing bell, and the same day Meta is notifying 8,000 employees of layoffs while canceling another 6,000 open roles. That's amid a major wave of layoffs in the tech sector as Silicon Valley races to pivot toward AI-first restructuring."

"Intuit's second-quarter earnings reported $4.7 billion in revenue, beating expectations of $4.53 billion, and up 17% year over year. Adjusted earnings per share (EPS) of $4.15 topped analyst estimates of $3.68. Shares of Intuit (Nasdaq: INTU) fell 5% in morning trading and were still down nearly 4% by midday Wednesday at the time of this writing."

Read at Fast Company