Intuit, the California-based software company renowned for its products including TurboTax, Credit Karma, and Mailchimp, is making workforce reductions in anticipation of the "AI revolution. " In a move toward AI-focused restructuring, tax preparation and financial software company Intuit revealed plans on July 10, 2024, to lay off 1, 800 employees, constituting 10% of its workforce (AP). As per SFGATE, the job cuts will primarily impact California, with approximately 600 layoffs, including 384 workers in Mountain View and 215 in San Diego. In a communication to staff members, Intuit CEO Sasan Goodarzi noted that while the company is positioned well to leverage AI-driven innovation, it is imperative to expedite innovation and investments in areas crucial to future success. Consequently, the company arrived at the "extremely difficult decision" to reduce its workforce significantly. Goodarzi clarified that out of the 1, 800 employees being let go, 1, 050 did not meet performance expectations. The objective of the layoffs is not cost-cutting, but rather streamlining operations and reallocating resources to key growth sectors. Additionally, over 300 roles will be removed to streamline work processes, and the number of executives will be reduced by roughly 10%. Nevertheless, Intuit plans to hire 1, 800 new employees mainly in engineering, product development, and customer-facing roles such as sales, customer success, and marketing.

The company foresees an increase in overall headcount in fiscal year 2025 and beyond. Affected employees will conclude their tenure on September 9 and will be provided a severance package comprising at least 16 weeks of pay, with an additional two weeks of pay for each year of service to facilitate their transition. The tech industry has witnessed significant layoffs in recent times, with the pandemic leading to an abrupt downturn. In 2023 alone, more than 260, 000 individuals lost their jobs in the sector. Despite an improved economic landscape, layoffs have persisted in 2024, with over 106, 000 tech professionals losing their positions by June, as reported by Layoffs. fyi. Companies like Google, Amazon, Zoom, and Discord have all contributed to these figures.