Intuit, the parent company of TurboTax and Credit Karma, said it plans to layoff 1,800 workers, representing 10% of its workforce, as the company plans to implement more artificial intelligence in its workflow.
In a letter to employees, Intuit said the move was not one to cut costs, as it plans to hire 1,800 new employees. The company, however, has not said whether these employees will be paid at the same rate as those being laid off.
"These are extremely painful decisions for me and my team because we deeply understand the impact these decisions have on our friends and colleagues who will be leaving. We are very grateful for the great work they have done and the amazing contributions they have made while at Intuit," said Intuit CEO Sasan Goodarzi in a letter to employees.
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U.S. employees being laid off will get a minimum of 16 weeks of pay, plus two additional weeks for every year of service. Those being eliminated will also be provided standard employee health care for six months.
In the announcement, Goodarzi told employees that 1,050 are leaving the company "who are not meeting expectations." He added that Intuit is eliminating more than 300 roles across the company.
The letter to employees suggests the number of workers would actually grow by fiscal year 2025, but new employees will come in from different fields.
"We will hire approximately 1,800 new people primarily in engineering, product, and customer-facing roles such as sales, customer success, and marketing," Goodarzi said.
All of these moves, he said, will help the company as it relies more on AI.
"This is truly an extraordinary time — AI is igniting global innovation at an incredible pace, transforming every industry and company in ways that were unimaginable just a few years ago. Companies that aren’t prepared to take advantage of this AI revolution will fall behind and, over time, will no longer exist," he said.
