Tax preparation company Intuit to lay off 1,800 as part of an AI-focused reorganization plan

Matt Ott, Associated Press

WASHINGTON (AP) — Tax mentation and financial package institution Intuit announced an AI-focused reorganization scheme Wednesday that includes laying disconnected astir 10% of its workforce.

The institution down QuickBooks and TurboTax said it was laying disconnected 1,800 employees, but that it expects to prosecute astatine slightest that galore successful fiscal 2025 arsenic it accelerates its attraction connected incorporating artificial intelligence into its products and services.

In an email to employees, CEO Sasan Goodarzi said much than 1,000 of nan layoffs were labor that were not gathering nan company’s elevated expectations.

Another 300 positions are being eliminated “to streamline activity and reallocate resources toward cardinal maturation areas,” nan email said.

Mountain View, California-based Intuit will besides adjacent offices successful Boise, Idaho and Edmonton successful Alberta, Canada wherever much than 250 labor work. Some of those workers will transportation to caller locations, nan institution said.

“The era of AI is 1 of nan astir important exertion shifts of our lifetime,” Goodarzi said successful nan opening of his email to staff. ”Companies that aren’t prepared to return advantage of this AI gyration will autumn down and, complete time, will nary longer exist.”

As for severance, Intuit said that each its laid disconnected U.S. labor will get a minimum of 16 weeks of pay, positive 2 further weeks for each twelvemonth of work and “at least” six months of wellness security coverage. U.S. labor received 60 days announcement of their termination, pinch a past time of Sept. 9.

In a regulatory filing, Intuit estimated nan reorganization scheme will incur betwixt $250 cardinal and $260 cardinal successful charges, mostly coming successful its fiscal 4th fourth ending July 31.

Intuit shares fell 3.6% successful greeting trading to $626.29 per share.