Intuit to lay off more than 3,000 employees as it refocuses on AI

Enterprise software giant Intuit will lay off about 3,000 people, or 17% of its workforce, as it seeks to redirect resources to integrating AI into its products, Reuters reported, citing an internal memo to employees.

According to Reuters, a memo from CEO Sasan Gudarji said the job cuts were aimed at simplifying the company’s structure to reduce complexity and allow it to focus on its AI efforts.

The company, which makes accounting, tax and personal finance software such as TurboTax, QuickBooks and Credit Karma, had 18,200 employees worldwide as of July 2025, according to its annual report.

Intuit did not immediately respond to a request for comment and did not respond to questions about whether executives, directors and CEOs would receive pay cuts. Mr. Goodalge’s salary was worth $36.8 million in fiscal year 2025, including cash incentives and stock compensation.

The layoffs come in a bad year for tech industry workers. The tech industry has already cut more than 100,000 jobs this year, according to Statista, and if the trend continues, it will be cut faster than in both 2024 and 2025.

Companies like Amazon, Block, Cisco, Cloudflare, Meta, Microsoft, and Oracle are each laying off thousands of employees, all citing the need to refocus spending on AI projects as the reason for layoffs and restructuring.

At the same time, all of these companies have recently reported strong revenues and profits, due to clearly strong demand for AI products, services, or the infrastructure that powers AI. Shares of nearly all of these companies are also rising as investors bet that AI will become a new growth vehicle for software companies around the world.

But Intuit hasn’t been seen as a beneficiary of the AI ​​boom, and its stock has consistently underperformed the broader S&P 500 over the past 12 months. The company is caught up in a broader wave of concerns that new AI products and services threaten to change the way software is developed and used, making traditional software-as-a-service companies unable to keep up or compete.

In its fiscal second quarter, which ended in January, Intuit reported revenue of $4.65 billion, a 17% increase, and net income of $693 million, a 48% improvement from the year-ago period.

The company expects third-quarter sales to increase by about 10% and will report results later today.