Intuit to lay off over 3,000 employees to refocus on AI
Source: TechCrunch
Layoffs Overview
Enterprise software giant Intuit is letting 17% of its staff go—about 3,000 employees—as it seeks to divert resources toward embedding AI into its products, according to a Reuters report based on an internal memo sent to employees.
The memo from CEO Sasan Goodarzi says the layoffs are intended to reduce complexity by simplifying the company’s corporate structure and to help focus on AI efforts.
Company Background
Intuit, which makes accounting, tax, and personal‑finance software such as TurboTax, QuickBooks, and Credit Karma, had 18,200 employees worldwide as of July 2025 (see its annual report).
Executive Compensation
Goodarzi’s total compensation for fiscal 2025 was $36.8 million, including cash incentives and stock awards (see the filing on the SEC website).
Industry Context
The layoffs come amid a challenging year for the tech workforce. The tech industry has already cut more than 100,000 jobs this year, according to Statista, and the trend is expected to outpace both 2024 and 2025 if it continues.
Other large tech firms that have announced sizable job cuts for similar AI‑focused restructuring include:
- Amazon – 16,000 layoffs
- Block – 4,000 layoffs
- Cisco – Nearly 4,000 cuts
- Cloudflare – 1,100 jobs made obsolete by AI
- Meta – Layoffs announced in May 2026
- Microsoft – Buyout offers for up to 7% of U.S. employees
- Oracle – Layoffs with severance negotiations denied
Despite these cuts, many of the companies have reported strong revenue and profit growth, citing robust demand for AI products, services, or infrastructure. Their share prices have generally risen as investors bet on AI‑driven growth.
Intuit, however, has not been perceived as a beneficiary of the AI boom. Its shares have consistently underperformed the broader S&P 500 over the past 12 months (see performance comparison on AlphaSpread). The company is also caught in broader concerns that traditional SaaS firms may struggle to keep up with rapidly evolving AI offerings (see the discussion on the “SaaS‑pocalypse” at TechCrunch).
Financial Performance
In its fiscal second quarter ended January, Intuit reported:
- Revenue: $4.65 billion (up 17% YoY)
- Net profit: $693 million (up 48% YoY)
The company expects revenue to increase by about 10% in the third quarter, with results to be reported later today.