Intuit’s AI Focus Results in 1,800 Layoffs, Equal Number of New Hires Expected
Intuit's layoffs will affect staff in locations around the world. Source: Intuit.
Key Takeaways
- Intuit is laying off 1,800 employees.
- CEO Sasan Goodarzi described the decision to lay off staff as “painful,” but insisted it was necessary.
- Rather than downsizing its workforce, Intuit intends to make up the numbers with new employees as it invests in its AI transformation.
Founded in 1981, Intuit is a Silicon Valley veteran that has endured multiple digital revolutions in the last 4 decades. Now, with a global AI revolution underway, the software developer is reinventing itself once again.
Unfortunately for 1,800 employees making up around 10% of Intuit’s workforce, this means they will be laid off to make way for new employees whose roles will be better aligned with the company’s strategic redirection.
Out With the Old, in With the New
In a letter to staff on Wednesday, July 10, Intuit CEO Sasan Goodarzi described the decision to lay off staff as “painful,” but insisted it was necessary for the company to survive in the age of AI.
“Companies that aren’t prepared to take advantage of this AI revolution will fall behind and, over time, will no longer exist,” he observed.
He went on to explain that the layoffs aren’t about cutting costs. Instead, “the changes we are making today enable us to allocate additional investments to our most critical areas to support our customers and drive growth.” As such, he said the company intends to make approximately 1,800 new hires in engineering, product, and customer-facing roles.
Intuit’s “Big Bet” on AI
While Intuit has been experimenting with artificial intelligence for over a decade, it has significantly ramped up the integration of generative AI across its software range since 2018.
In recent communications, executives have outlined an “AI-driven expert platform strategy ” centered on 5 “Big Bets” the company is making about the future of business. For instance, in Wednesday’s letter to staff, Goodarzi pointed to Big Bet 1, “revolutionize speed to benefit,” stating that Intuit will accelerate investment “to reimagine our products from traditional workflows to AI-native experiences.”
Using AI to Boost Growth
Besides overhauling its product offering, Intuit is also targeting international growth, with a specific focus on Australia, Canada and the UK.
The firm is also doubling down on the small business market, leveraging the popularity of products like QuickBooks and MailChimp. Since acquiring MailChimp in 2021, Intuit has worked to integrate the two software platforms, developing new features and automations that empower small business owners with sophisticated AI capabilities in bookkeeping and marketing.
As well as connecting the two platforms and equipping them with Intuit Assist, last month, the firm introduced MailChimp Revenue Intelligence.
In a post on X , Goodarzi described how the new AI solution “combines the power of QuickBooks financial data and Mailchimp marketing data to give small businesses the information they need to grow.”
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