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Intuit is laying off around 3,000 employees globally, or roughly 17% of its workforce, as the software company restructures operations and intensifies its focus on artificial intelligence initiatives.
The job cuts were disclosed in an internal memo sent by Chief Executive Sasan Goodarzi to employees on Wednesday and reviewed by Reuters.
According to the memo, the company aims to reduce organizational complexity and streamline its structure to improve execution and product delivery.
Goodarzi said the restructuring would allow the company to focus more sharply on its “big bets,” including efforts to embed AI capabilities across its products and services.
Shares of Intuit (INTU) fell nearly 5% in morning trading ahead of the company’s third-quarter earnings report due later in the day.
However, later in the day, the stock pared some losses and was down by about 3%.
The layoffs add Intuit to a growing list of technology companies trimming headcount this year amid rising concerns about AI-driven disruption and slowing growth in parts of the software industry.
Companies including Block, Amazon, and Pinterest have also announced workforce reductions while pointing to efficiency gains from AI.
AI partnerships become central to growth plans
Intuit has been accelerating its push into artificial intelligence through partnerships with leading AI firms, including OpenAI and Anthropic.
The company has signed multi-year agreements to integrate AI models from Claude and ChatGPT into its financial software ecosystem.
The partnerships are intended to combine Intuit’s tax, accounting, personal finance, and marketing tools with generative AI capabilities.
The company’s restructuring also includes shutting down its Reno and Woodland Hills offices as it consolidates teams into major operational hubs.
According to the memo, affected US employees will remain on payroll until July 31 and receive severance packages that include 16 weeks of base pay, along with an additional two weeks for every year spent at the company.
Intuit employed about 18,200 people across seven countries as of July 31, 2025, according to its annual report.
The broader technology industry has seen mounting anxiety around AI-related disruption.
Layoffs.fyi, which tracks job cuts in the sector, estimates that more than 111,000 workers have been laid off by over 140 technology companies this year.
Assessing Intuit stock ahead of earnings
While Intuit continues to invest heavily in AI, investors have increasingly questioned whether emerging AI-powered startups could pressure some of its core businesses.
The stock has come under pressure in recent months amid concerns that AI-focused companies such as Anthropic, Rillet, Basis, and Numeric could challenge traditional accounting and finance software providers.
Another key concern has been the slowdown at Mailchimp, the email marketing platform that Intuit acquired several years ago.
Mailchimp’s revenue declined by around 21% in the most recent quarter, prompting some analysts to suggest the company could eventually consider spinning off the business.
Still, Intuit’s broader operations have remained resilient.
In its latest reported quarter, revenue rose 17% to $4.7 billion, driven by strong growth in its Global Business Solutions segment and online ecosystem.
Credit Karma revenue climbed to $616 million, while TurboTax revenue increased 12% to $581 million.
Wall Street expects revenue for the upcoming quarter to rise roughly 10% to $8.54 billion, while earnings per share are projected at $12.57, compared with $11.65 a year earlier.
Despite slowing growth, some investors believe Intuit’s valuation has become increasingly attractive.
The company’s forward price-to-earnings ratio has fallen to about 16, below the sector median of 24 and well under its five-year average of 35.
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