Intuit has announced it is letting approximately 1,800 employees go, or roughly 10% of the company’s entire workforce.

Intuit CEO Sasan Goodarzi announced the news in a blog post, highlighting the role AI is playing in revolutionizing the company’s offerings.

Intuit is at a critical moment in our history. For over 40 years, we’ve had a successful track record of self-disruption and reinvention, transforming through multiple technological shifts. We were early to bet on and invest in AI, building one of the largest AI-driven expert platforms to fuel the success of consumers, small and mid-market businesses, and important partners like accountants, financial institutions, and marketing agencies who rely on us daily to prosper. With the introduction of GenAI, we are now delivering even more compelling customer experiences, increasing monetization potential, and driving efficiencies in how the work gets done within Intuit. But it’s just the beginning of the AI revolution.

Goodarzi then drew a direct correlation between AI’s growing role and the decision to let 1,800 employees go.

Intuit is in a position of strength; we have the strategy and momentum that we need to succeed. To fulfill our mission to power the prosperity of our customers around the world and strengthen our leadership position, we must accelerate our innovation and investments in the areas that are most important to our future success. With this context, I am sharing some very difficult decisions my leadership team and I have made to ensure we are able to increase investment in these key growth areas. Today we will be communicating to approximately 1,800 employees, which is 10% of our workforce, that they will be leaving Intuit. These are extremely painful decisions for me and my team because we deeply understand the impact these decisions have on our friends and colleagues who will be leaving. We are very grateful for the great work they have done and the amazing contributions they have made while at Intuit.

Interestingly, the company will hire approximately 1,800 new employees, although they will be in engineering, product, and customer facing roles.

We do not do layoffs to cut costs, and that remains true in this case. The changes we are making today enable us to allocate additional investments to our most critical areas to support our customers and drive growth as detailed below. This includes reinvesting in the necessary skills and capabilities to support these areas, and, as such, we will hire approximately 1,800 new people primarily in engineering, product, and customer facing roles such as sales, customer success, and marketing. In context of the actions we are taking today, we expect our overall headcount to grow in FY25 and beyond.

Given that Intuit’s overall headcount is remaining roughly the same, the 1,800 departing employees are clearly holding roles that the company no longer needs filled. The company says 1,050 employees are leaving as a result of not meeting the company’s expectations. Intuit is also reducing the number of executives by 10%. The company is consolidating 80 technology roles in locations where it is continuing to invest and grow. Finally, Intuit is axing more than 300 jobs to streamline work and resources spent.

Goodarzi ended by acknowledging how difficult the decision was, while striking an optimistic tone for the future.

Today is an incredibly difficult day and our hearts go out to all of you who are leaving Intuit. We sincerely thank you for all you have done for the company. We know you will continue to make a significant impact and achieve great success in your next chapter.

With the strength of our people, culture, and mission, we are positioned to take advantage of this AI revolution and revolutionize our customers’ experiences to deliver undisputed benefits in ways that we could never imagine. Today is “Day 1”. Together, we will focus on the future and all the possibilities to power prosperity around the world.