Intuit has revealed plans to lay off approximately 1,800 employees and close two North American worksites as it shifts its focus toward artificial intelligence.
The Mountain View, California-based company, known for its tax-preparation software, said it will reduce its workforce by about 10 percent.
The company will also close offices in Boise, Idaho, and Edmonton, Canada.
These moves aim to bolster technology teams and capabilities in strategic locations.
CEO Sasan Goodarzi said the layoffs are part of reallocating resources to key growth areas, particularly artificial intelligence, in a letter to employees.
Despite these layoffs, Intuit plans to hire an additional 1,800 employees in fiscal 2025, which begins next month.
The new hires will primarily fill engineering, product development, and customer-facing roles, including sales and marketing.
Goodarzi said: “In the context of the actions we are taking today, we expect our overall headcount to grow in FY25 and beyond.”
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The layoffs and site closures would cost between $250 million and $260 million, mostly incurred in the fourth fiscal quarter ending this month.
This includes $217 million to $227 million in severance payments and employee benefits.
It also covers almost $33 million in non-cash charges related to share-based compensation and site closures.
Intuit expects the reorganization plan to be substantially completed by its first fiscal quarter ending October 31.
According to a regulatory filing, the company employed about 18,000 people in 10 countries as of July 2023.
