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Intuit to lay off 1,800 employees before shifting focus to AI

July 10, 2024
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Intuit to lay off 1,800 employees before shifting focus to AI
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Intuit announced that it will cut 10% of its workforce. Photo courtesy of Intuit

Intuit announced that it will cut 10% of its workforce. Photo courtesy of Intuit

July 10 (UPI) — Intuit, the owner of financial software platforms like QuickBooks and TurboTax announced on Wednesday that it will cut 1,800 jobs, or 10% of its workforce.

Intuit CEO Sasan Goodarzi said the company plans to return the company to its current staff numbers but will replace the laid-off staff members with employees who specialize in artificial intelligence and sales as the company shifts to focusing on products that will be driven by AI.

“The changes we are making today enable us to allocate additional investments to our most critical areas to support our customers and drive growth,” Goodarzi said, according to Bloomberg.

The Mountain View, Calif.-based company said the layoffs will lead to the closing of two worksites before it begins hiring for new AI-related jobs. Goodarzi said he will be looking to hire more financial tech workers for Intuit’s Credit Karma platform.

Intuit’s filing with the Securities and Exchange Commission on Wednesday said the Boise, Idaho and Edmonton, Canada will be closed.

He said while Intuit will be making the AI pivot, it will be looking to maintain its core customers made up of small and medium-sized businesses.

In its SEC filing, Intuit said it expects to incur up to $260 million in layoff costs in relation to various severance plans and employee benefits and $33 million in “non-cash charges for share-based compensation” and charges related to the site closers in Boise and Edmonton.

In January, the Federal Trade Commission ordered Intuit to end its marketing of TurboTax as free for all customers because it was not accurate and only a percentage qualified. It charged that TurboTax sought to deceive customers with the marketing ploy.

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Copyright for syndicated content belongs to the linked Source : United Press International – https://www.upi.com/Top_News/US/2024/07/10/Intuit-layoffs-AI/8041720630441/

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