Sundry Photography
- Intuit (NASDAQ:INTU) will fire 1,800 employees as the owner of QuickBooks, Credit Karma, and TurboTax shifts its focus to AI and reworks its products from traditional workflows to AI-native processes.
- The strategy also focuses on mid-market expansion for small businesses, money movement, and international growth, Fortune magazine reported on Wednesday, citing an internal memo from Intuit CEO Sasan Goodarzi. The motivation behind the cuts isn’t cutting costs, he said in the memo.
- “We do not do layoffs to cut costs, and that remains true in this case,” he said. Intuit (INTU) expects to hire ~1,800 new employees with skills primarily in product, engineering, and customer-facing roles such as customer success, marketing, and sales, according to reporting by Fortune.
- The company expects its headcount to increase in FY2024, which begins on Aug. 1. It is shutting two locations — in Edmonton and Boise — with more than 250 employees, some of which will be relocating to other sites.
- Intuit (INTU) stock dropped 1.8% in Wednesday premarket trading.
- Intuit (INTU) expects to incur ~$250M-$280M in charges related to the plan, mostly in its Q4, which end on July 31, 2024.