Intuit to Cut 17% of Workforce in Shift Toward AI

Intuit Inc. is reducing its global headcount by approximately 17% as it moves to streamline operations and accelerate its investment in artificial intelligence, according to an internal memo reviewed by Reuters on Wednesday (May 20). The restructuring will result in the elimination of about 3,000 positions across the financial software giant.

In an email to employees, Chief Executive Sasan Goodarzi said reducing organizational complexity and simplifying the company’s structure was necessary for delivering improved products. As part of this consolidation, the company, which had approximately 18,200 employees as of mid-2025, will also wind down its offices in Reno, Nev. and Woodland Hills, Calif.

The layoffs mark a significant pivot for the maker of TurboTax and QuickBooks as it prioritizes its “big bets,” specifically the integration of generative AI across its service suite. Intuit has already secured multi-year agreements with AI leaders Anthropic and OpenAI to incorporate their models into its software, while simultaneously adding Intuit’s proprietary tax and accounting capabilities into AI bots like ChatGPT and Claude.

Shares of Intuit fell nearly 5% in morning trading following the announcement. The company, which was scheduled to report third-quarter results later Wednesday, joins a growing roster of tech firms, including Block, Amazon and Pinterest, that have cited AI-driven efficiency gains as a factor in recent layoffs.

Impacted employees in the United States will remain with the company through July 31. The severance package includes 16 weeks of base pay, plus two additional weeks for every year of service at the firm, Reuters reported.

The layoffs come amid a broader contraction in the technology sector. More than 111,000 employees have been laid off across 140 tech companies so far this year, following more than 124,000 job losses in 2025, Reuters reported, citing data from tracker Layoffs.fyi. Some industry observers have noted that AI is being used as a justification for restructuring plans that were already in development.

Inuit’s layoffs have been foreshadowed by recent AI initiatives. Earlier this month, the company introduced new AI-powered human capital management tools for small and medium-sized businesses (SMBs), designed to consolidate their software stacks. Last year, Intuit restructured its entire business model to focus on integrated services rather than software tools, citing AI as a key driver of this new strategy.