Intuit joins the list of businesses allocating funds for AI development through job reductions.
Tech giant Intuit is reorganizing its operations to focus on artificial intelligence (AI) investment, as part of a broader industry trend towards AI-powered efficiencies combined with workforce realignments. The company announced that it will be cutting approximately 1,800 jobs, with the majority of the layoffs affecting employees who did not meet performance expectations.
In a memo titled "Investing in the Future," posted on the Intuit blog, the company's CEO, S. "Doug" Goodarzi, emphasized the importance of AI for the future of the company. Goodarzi stated that companies not adopting AI will fall behind and eventually cease to exist.
The restructuring will enable Intuit to allocate additional investments to AI-powered projects, such as Intuit Assist and international growth. The new hires at Intuit will primarily be in engineering and product development, as well as sales, customer service, and marketing, with a focus on critical areas, including AI.
The layoffs are not intended to cut costs, but rather to reallocate resources towards key growth areas. Goodarzi explained that the company is focusing on AI development to unlock efficiency gains, modernize services, and accelerate product development.
Two sites in Edmonton and Boise will be closed, affecting 250 employees who will be relocated or let go. Intuit is also slashing executive roles by 10% and consolidating 80 technology roles.
The restructuring will incur a $14 million restructuring charge, as highlighted in Intuit's Q1 2025 earnings call. The company's goal is to become an AI-driven platform that accelerates financial services and disrupts traditional categories through automation and AI-powered experts.
The pattern is not unique to Intuit. Tech companies like Amazon are also embracing AI-led change for efficiency and innovation, even if it means fewer jobs in traditional roles. A 2023 study from Goldman Sachs suggests that 18% of current roles could be lost to automation, equaling some 300 million full-time jobs globally.
Dropbox, another tech company, cut 16% of its workforce last year, focusing on AI product development. However, details on Dropbox's AI-related job changes were not found in the search results, suggesting that the company may be influenced by similar dynamics, though explicit details for Dropbox were not found.
Despite the job cuts, Intuit's overall headcount is expected to grow over the next year, as the company continues to invest in AI and other growth areas. The company's focus on AI development reflects a broader industry move towards AI-powered efficiencies combined with workforce realignments.
- In light of its focus on AI development, Intuit's CEO, S. "Doug" Goodarzi, highlighted that companies not adopting AI may struggle to survive in the future finance industry.
- As part of its restructuring efforts, Intuit plans to hire in engineering, product development, sales, customer service, and marketing, focusing on AI and critical areas to unlock efficiency gains and accelerate product development.
