Intuit Lays Off 1,800, Plans to Hire 1,800 in AI and Data Push

Intuit lays off 1,800 employees while also planning to hire 1,800 new ones as it focuses on investing in AI and data.

Restructuring at Intuit: CEO Sasan Goodarzi announced layoffs, which include approximately 1,050 employees “not meeting expectations,” as part of the company’s plan to accelerate investments in data and AI:

• The layoffs come after Intuit had previously been noted for avoiding mass layoffs last spring, unlike many of its peers in the tech industry.
• Intuit recently shut down the Mint app and MailChimp-owned TinyLetter, signaling a shift in the company’s priorities and focus.

Investing in AI and data: Intuit’s layoffs are part of a larger strategy to invest more heavily in AI and data-driven initiatives:

• The company plans to hire 1,800 new employees to support its AI and data efforts, even as it lays off a similar number of existing staff.
• Intuit has been investing in AI-powered tools like its Assist bot, which helps with tax preparation, although the bot has faced criticism for giving bad advice.

Broader implications for the tech industry: Intuit’s decision to lay off a significant number of employees while simultaneously hiring new talent highlights the ongoing challenges and shifts in the tech industry:

• Many companies are grappling with the need to adapt to rapidly evolving technologies and customer demands, often leading to restructuring and layoffs.
• The focus on AI and data reflects a growing trend in the industry, as companies seek to leverage these technologies to improve their products and services, streamline operations, and gain a competitive edge.
• However, the replacement of existing employees with new hires raises questions about the impact on company culture, institutional knowledge, and the overall well-being of the workforce.

As Intuit navigates this transition, it will be crucial for the company to balance its investments in AI and data with the need to maintain a skilled and engaged workforce. The success of this strategy will likely depend on how effectively Intuit can integrate new talent and technologies while minimizing the disruption to its operations and culture.