Intuit to lay off over 3k employees to refocus on AI

Source: Hacker News

Overview

Enterprise software giant Intuit is letting 17 % of its staff go—about 3,000 employees—as it seeks to divert resources toward baking AI into its products, according to a Reuters report based on an internal memo sent to employees.

Layoff Details

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. Reuters

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, per its annual report.

Goodarzi’s salary for fiscal 2025 was $36.8 million, including cash incentives and stock awards, as shown in the SEC filing salary PDF.

Intuit did not immediately return a request for comment, nor did it address whether its management, directors, or the CEO would take a pay cut.

Industry Context

The layoffs come amid a difficult 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 projected to outpace both 2024 and 2025 if it continues.

Several other large tech firms have also announced sizable reductions, citing a need to refocus expenditures around AI projects:

• Amazon – 16,000 layoffs TechCrunch
• Block – 4,000 layoffs TechCrunch
• Cisco – nearly 4,000 cuts TechCrunch
• Cloudflare – 1,100 jobs made obsolete by AI TechCrunch
• Meta – restructuring and layoffs Reuters
• Microsoft – buyouts affecting up to 7 % of U.S. employees TechCrunch
• Oracle – layoffs with severance disputes TechCrunch

Despite these cuts, many of the companies have reported strong revenue and profit, driven by demand for AI products, services, and 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 AlphaSpread, and the firm is caught in the broader worry that traditional SaaS providers may struggle to keep pace with emerging AI‑centric offerings TechCrunch.

Financial Performance

In its fiscal second quarter ended January, Intuit reported revenue of $4.65 billion, a 17 % increase year‑over‑year, and net profit of $693 million, a 48 % improvement Intuit press release.

The company expects revenue to increase by about 10 % in the third quarter, with results slated for release later today.