TurboTax parent Intuit said Wednesday it will lay off about 1,800 employees, or 10% of its workforce, as it looks to focus on its artificial intelligence-powered tax preparation software and other financial products.
The company, which has invested heavily in providing AI-powered accounting and tax preparation tools to small and medium-sized businesses in recent years, expects to close two of its locations in Edmonton, Canada, and Boise, Idaho.
Intuit CEO Sasan Goodarzi said in a memo to employees that the company will rehire 1,800 new people, primarily in engineering, product and customer-facing roles.
The company did not provide a timeline for the new hires.
Intuit, which also makes online accounting software QuickBooks, said it would increase its investment in generative AI and plans to expand into new markets including Canada, the United Kingdom and Australia.
The memo added that 300 jobs were eliminated to streamline work, while 80 technical jobs were consolidated in locations such as Atlanta, Bengaluru, Tel Aviv and others as part of the layoff plan.
The company said in a regulatory filing that the layoffs will cost it between $250 million and $260 million, with a significant portion of those costs expected to come in the fourth quarter.
Intuit expects its headcount to grow in fiscal 2025 and beyond, Goodarzi said.
In May, Intuit reported higher third-quarter revenue and raised its annual outlook, anticipating increased demand for its AI-integrated products.
