Intuit to lay off 17% of staff to refocus on AI

Enterprise software company Intuit is laying off 17% of its worldwide workforce, a move that will impact about 3,000 employees (or over 3,000, according to reports). The company, which develops accounting, tax, and personal finance software products including TurboTax, QuickBooks, and Credit Karma, had 18,200 employees worldwide as of July 2025. According to an internal memo sent to employees by CEO Sasan Goodarzi, the layoffs are intended to reduce complexity by simplifying the company’s corporate structure and to refocus resources on its artificial intelligence efforts. Goodarzi, whose salary was $36.8 million during fiscal 2025, did not immediately address whether management or directors would take pay cuts.

The restructuring aligns Intuit with a broader trend across the technology sector, where companies are shifting capital toward AI infrastructure and product development. According to data provider Statista, the tech industry has cut more than 100,000 jobs this year. Other companies, including Amazon, Block, Cisco, Cloudflare, Meta, Microsoft, and Oracle, have also let go of thousands of employees. Like Intuit, these firms have cited a need to refocus expenditures around AI projects as the reason to cut jobs and restructure their organizations, even as they report strong revenue and profit driven by demand for AI services.

The job cuts at Intuit come despite strong recent financial performance. In its fiscal second quarter ended January, the company reported the following results:

• Revenue of $4.65 billion, representing a 17% increase compared to the same period last year.
• Net profit of $693 million, a 48% improvement.
• Expected revenue growth of about 10% for the third quarter.

Despite these strong financials, Intuit shares have underperformed in the S&P 500—the US stock market index—over the past 12 months. The company has been caught up in broader worries that traditional software-as-a-service (SaaS) firms will not be able to keep up or compete, as new AI products and services threaten to change how software is developed and used. While investors have bid up the share prices of other tech firms betting on AI growth, Intuit has underperformed as it works to integrate AI into its core products.

Why it matters

Intuit’s move highlights a growing trend where even profitable software companies are aggressively restructuring to prioritize AI, signaling that investors are increasingly valuing AI-readiness over traditional software-as-a-service growth metrics.