US-based fintech firm Intuit has announced that is is laying off 10% of its workforce. In a letter written to employees, Intuit CEO Sasan Goodarzi said that the move is not to reduce costs. “We do not do layoffs to cut costs, and that remains true in this case,” Goodarzi told the employees. “The changes we are making today enable us to allocate additional investments to our most critical areas to support our customers and drive growth,” he added.
He also said that more than 1,000 employees who are being laid off weren’t “meeting expectations.” Goodarzi, in the letter told employees, "We’ve significantly raised the bar on our expectations of employee performance, resulting in approximately 1,050 employees leaving the company who are not meeting expectations and who we believe will be more successful outside of Intuit.”
Intuit is also eliminating more than 300 roles across the company to streamline work and reallocate resources toward key growth areas.
All US employees will receive a package that includes a minimum of 16 weeks of pay, plus two additional weeks for every year of service, said Goodarzi. All employees in the US will have 60 days before they leave the company with a last day of September 9, 2024.
The CEO also said that the company is consolidating 80 technology roles to sites where it is expanding teams and capabilities. These include Atlanta, Bangalore, New York, Tel Aviv, and Toronto, as per Goodarzi.
Like many other tech companies, Intuit is looking to accelerate investing in data and AI. The company wants to reimagine its products from traditional workflows to AI-native experiences that eliminate work, save time, and put more money in our customers’ pockets. “We are accelerating our hiring of top engineering talent across the technology ecosystem to support these investments,” the CEO said.
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