Company cutting 17% of staff

Tax and finance software manufacturer Intuition The technology company, the latest to announce a massive downsizing amid the AI ​​boom, said Wednesday it will cut 17% of its full-time workforce. Shares lost 11% of their value in extended trading.

The decision will affect more than 3,000 people, down from the company’s last reported headcount of 18,200. Intuit said the restructuring will trigger charges of $300 million to $340 million, mostly in the current quarter.

“Looking ahead, we are further scaling our growth engines and designing an organization that operates at higher speed to deliver resilient, long-term growth,” said Intuit CEO Sasan Goodarzi. a statement.

Intuit, which makes QuickBooks and TurboTax, has been hammered by investors this year, while there’s also been a broader decline in the software space; Wall Street fears that artificial intelligence will displace some of the products and services of established companies. Intuit shares have fallen more than 40% this year, while the S&P 500 has gained about 8%.

ZoomInfo and content delivery network provider cloud flare They announced earlier this month that they would each will trim 20% number of staff. Cisco Last week, it said it would cut its workforce by fewer than 4,000 jobs this quarter, representing less than 5% of total employees. on wednesday Meta It moved forward with plans to cut 8,000 jobs.

In addition to announcing layoffs, Intuit also reported earnings on Wednesday. The company finished its fiscal third quarter with adjusted earnings per share of $12.80 and revenue of $8.56 billion for the period ending April 30, the tax filing deadline. Analysts polled by LSEG expected revenue of $12.57 per share and revenue of $8.61 billion.

Revenue was up 10% from a year ago; this was the slowest growth rate at any time since 2024. Net income rose nearly 9% to $3.06 billion.

Intuit raised its fiscal 2026 forecast. The company currently expects adjusted earnings per share of $23.80 to $23.85 and revenue of $21.34 billion to $21.37 billion. LSEG consensus projected earnings of $23.21 per share and revenue of $21.23 billion.

“We believe that by reducing complexity and simplifying our structure to become a faster, leaner and more focused company, we can serve more customers and deliver breakthrough products that drive our customers’ success,” Goodarzi wrote. note to employees.

Goodarzi told employees that the company has too many layers of management and will physically bring teams together to increase collaboration with the closure of offices in Reno, Nevada, and Woodland Hills, California. Goodarzi wrote that Intuit will eliminate redundant roles and pull back its Mailchimp operations after integrating TurboTax and Credit Karma.

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