tech
Intuit plans to cut workforce by about 17% as tax software maker reckons with slowing growth
Intuit's stock has been hammered this year as investors worry that generative artificial intelligence models could threaten software companies.
TL;DR
- Intuit is cutting 17% of its full-time workforce, impacting over 3,000 employees.
- The decision is influenced by investor fears that AI could displace products and services from established software companies.
- Intuit shares have fallen more than 40% this year.
- The company reported adjusted earnings per share of $12.80 on $8.56 billion in revenue for its fiscal third quarter.
- Revenue grew 10% year-over-year, the slowest rate of expansion since 2024.
- Intuit lifted its forecast for fiscal year 2026, expecting higher adjusted earnings per share and revenue than previously projected.
- Layoffs are attributed to simplifying the company's structure, reducing management layers, closing offices in Reno, Nevada, and Woodland Hills, California, and eliminating redundant roles after integrations.