Intuit, the company behind TurboTax, QuickBooks, Credit Karma and Mailchimp, is cutting about 3,000 jobs globally in one of the biggest technology workforce reductions announced this year. The layoffs represent roughly 17% of the company’s workforce and come as Intuit aggressively restructures around artificial intelligence and operational efficiency.
The move was first reported by Reuters after reviewing an internal memo sent by CEO Sasan Goodarzi to employees on Wednesday. In the message, Goodarzi reportedly said the company needs to reduce complexity, simplify its structure and focus resources on its “big bets,” especially AI-driven products and services.
Before the cuts, Intuit employed around 18,200 workers across seven countries as of July 31, 2025. The restructuring also includes the closure of Intuit’s Reno and Woodland Hills offices as the company consolidates teams into larger strategic hubs.
AI Partnerships Playing a Major Role
The layoffs arrive only months after Intuit expanded its AI ambitions through multi-year partnerships with OpenAI and Anthropic. Those agreements are designed to integrate advanced AI models into Intuit’s products while also bringing Intuit’s tax, accounting, financial and marketing tools into platforms like ChatGPT and Claude.
Executives inside the company believe AI can automate customer support, improve tax preparation workflows, simplify accounting tasks for small businesses and strengthen financial recommendations across QuickBooks and Credit Karma.
But the restructuring also reflects a larger shift happening across Silicon Valley. Technology companies are increasingly using AI to streamline operations, flatten management layers and reduce overlapping roles. Reuters noted that more than 111,000 tech workers have already lost jobs in 2026 across over 140 companies tracked by Layoffs.fyi.
Companies including Amazon, Block and Pinterest have also announced workforce reductions tied partly to AI-related efficiency gains. Earlier this year, Swikblog covered how Block reshaped teams while increasing its AI investments, a strategy now becoming common across the sector.
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Severance Package and Market Reaction
According to the memo cited in multiple reports, affected U.S. employees will receive 16 weeks of base pay along with two additional weeks for every year worked at Intuit. Their final working day will reportedly be July 31.
INTU stock fell nearly 5% after the news surfaced ahead of the company’s third-quarter earnings report, as investors weighed whether the restructuring would improve long-term profitability or signal pressure inside the business.
For employees, the announcement highlights growing fears around AI disruption in white-collar technology jobs. While Intuit says the changes are necessary to build better products faster, the scale of the layoffs shows how rapidly AI is changing hiring strategies across the software industry.
Investors will now closely watch whether Intuit can successfully balance automation, customer trust and future growth without weakening the core businesses that made TurboTax and QuickBooks market leaders.
Source: Reuters
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