Key Takeaways
Intuit Inc. announced plans to cut 17 percent of its workforce, or about 3,000 jobs, even as it reported fiscal third-quarter results that beat analyst estimates and raised its full-year guidance.
"This is not an AI layoff," CEO Sasan Goodarzi told Barron's, stating the job cuts were to make Intuit a "faster and leaner company" to focus on key growth areas.
The maker of TurboTax reported adjusted earnings of $12.80 a share on revenue of $8.56 billion, topping consensus estimates of $12.57 and $8.54 billion, respectively. Intuit raised its fiscal 2026 earnings guidance to a range of $23.80 to $23.85 per share.
Shares of Intuit fell 9.4 percent in after-hours trading following the announcement. The move adds to the 111,173 job cuts across the tech sector this year, with investors weighing the cost savings against potential disruption and the CEO's comments on AI's role.
The restructuring at Intuit, whose software includes QuickBooks and CreditKarma, involves shuttering offices in Woodland Hills, California, and Reno, Nevada, to consolidate workers into "key hubs," according to an internal memo. Affected U.S. employees will receive 16 weeks of base pay plus two additional weeks for each year of service, with a final employment date of July 31.
Goodarzi's denial that artificial intelligence drove the layoffs contrasts with actions at other tech giants like Meta Platforms Inc. and Snap Inc., which have explicitly linked recent workforce reductions to efficiency gains from AI. Despite the CEO's comments, Intuit has aggressively pushed into AI, signing deals with OpenAI and Anthropic to integrate the technology into its products.
The layoffs come at a time of high anxiety for tech workers and investors. Intuit's stock has fallen 42 percent this year, with some Wall Street analysts expressing concern that AI could eventually disrupt the company's core software offerings. Goodarzi addressed this, stating, "You can’t run your entire business in an LLM, because audits matter, accuracy matters, compliance matters, and that’s really what we do."
The guidance increase suggests management expects underlying business strength to continue. The company now expects fiscal 2026 revenue between $21.3 billion and $21.4 billion. Investors will watch the company's next earnings call for details on how the restructuring impacts margins and the pace of its AI integration.
This article is for informational purposes only and does not constitute investment advice.
