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Intuit cuts, AI focus
Intuit, the parent company of TurboTax, Credit Karma and QuickBooks, cut roughly 17% of its workforce on Wednesday, and CEO Sasan Goodarzi told CNBC's Jim Cramer on "Mad Money" that the job cuts had "nothing to do with AI."
“"None of it had to do with AI," Goodarzi told CNBC's Jim Cramer”
Goodarzi said the reduction was designed to streamline operations and improve execution rather than replace workers with artificial intelligence, framing the move as a broader effort to simplify Intuit's organizational structure and create a faster-moving "builder culture."
Reuters-cited reporting put the cuts at about 3,000 employees across seven countries, and said Intuit would close its Reno and Woodland Hills offices as it consolidated teams into "key hubs."
The layoffs were tied to Intuit's AI partnerships, with the company signing multi-year deals with Anthropic and OpenAI to embed their models into its tax and finance platforms while it reported quarterly earnings Wednesday after the close with revenue of $8.56 billion and adjusted earnings per share of $12.80.
Memo, severance, office closures
An internal memo reviewed by Reuters said Goodarzi told employees the restructuring would reduce complexity, simplify Intuit's structure, and sharpen focus on artificial intelligence, and it also set a final employment date of July 31, 2026 for affected U.S. employees.
For severance, the Reuters-reviewed memo described a package of 16 weeks of base pay plus two additional weeks per year of tenure, and it said the majority of restructuring charges would land in the current quarter.
Quartz reported the memo said the layoffs were intended to sharpen Intuit's focus on core priorities including embedding AI across its services, while Reuters-cited reporting said the Reno and Woodland Hills office locations were slated to close.
In the same Reuters cycle, Intuit shares were down nearly 5% in morning trading after the memo was reported, then tumbled a further 11% in after-hours trading once the earnings release confirmed the restructuring details.
Investors weigh execution risk
Investors and analysts were watching how Intuit would fund AI work while cutting headcount, with CNBC reporting that shares of Intuit have fallen roughly 41% this year and that Goodarzi pushed back on the idea that artificial intelligence poses a near-term threat to Intuit's core business.
“"People spend seven times more on tax and accounting experts as they do on software"”
Goodarzi argued that people buy confidence for high-stakes financial tasks, saying, "People spend seven times more on tax and accounting experts as they do on software, because people don't buy code, they buy confidence," and he added that "LLMs are not the place where people rely on to do their taxes and to run their business."
Gotrade framed the same restructuring as an AI pivot, saying Intuit unveiled plans to cut 17% of its global staff, or about 3,000 workers, and that Intuit shares fell nearly 5% on the announcement morning.
The Human Resources Director | Other account also said Intuit's restructuring charges were $300 million to $340 million, and it reported that Intuit raised full-year fiscal 2026 guidance to $23.80 to $23.85 in adjusted earnings per share and $21.34 to $21.37 billion in revenue, even as the company reduced its workforce.
