Intuit said Wednesday it will lay off 17% of its workforce, or about 3,000 employees, as the Mountain View, California-based company restructures to cut costs and invest more heavily in artificial intelligence. The maker of Turbotax said the move is meant to simplify the organization and make it faster, leaner and more focused.
The company also said it will close offices in Reno and Woodland Hills and expects restructuring charges of $300 million to $340 million. Shares of the logic behind the cuts were laid out in an earnings call by chief financial officer Sandeep Aujla, who said the company was trying to become leaner and that the layoffs were not tied directly to AI replacing employees.
Intuit reported third-quarter revenue of $8.56 billion, up 10% from a year earlier, showing that the cuts are coming from a business that is still growing. But the company said it had slowed down under too many organizational layers, a problem it says the restructuring is meant to fix. Sasan Goodarzi said the company is integrating AI across its entire portfolio and that the changes will reduce overlap as TurboTax and Credit Karma are brought into a single team.
That matters because Intuit has been under pressure to keep pace as tax and finance software firms race to build AI-powered tools that can do more of the work for customers. The company, which also operates QuickBooks and Mailchimp, said its accounting AI agents now power recommendations across more than 50 million transactions each week, while its business tax AI agents are identifying millions of dollars in deductions.
The contradiction is hard to miss: Intuit says the cuts are not a response to AI replacing people, yet the restructuring is explicitly aimed at investing in AI and reducing overlapping work inside TurboTax and Credit Karma. Aujla said the company’s goal was to make the organization leaner, and Goodarzi said Intuit believes it can serve more customers and deliver breakthrough products by reducing complexity and simplifying its structure.
The broader tech industry is already shedding workers as AI changes how software is built and sold, and a separate labor forecast projects software developers could face a 3% job contraction by 2027 because of AI coding capabilities. For Intuit, the immediate answer is clear: the layoffs are meant to cut costs, close redundant offices and speed up the company’s AI shift, even as the company insists the technology is not the direct reason jobs are disappearing.
