Intuit will tell about 1,800 of its global employees — 10% of its workforce — they are leaving the company. But leadership calls for action do not have to reduce costs.
Sasan Goodarzi, the CEO of a Fortune 500 company that offers products such as QuickBooks, Credit Karma, and TurboTax, wrote an internal email to employees, which saw good fortune“Announcing the very difficult decisions that my leadership team and I have made.”
Goodarzi explains that Intuit's transformation journey, including the departure of 1,800 employees, is part of a strategy to increase investment in priority focus areas of AI and generative AI, such as its GenAI-powered financial assistant called Intuit Assist. called, and reimagining its products from the traditional. Workflow for spatial AI experiments. The strategy also focuses on money movement, mid-market expansion for small businesses, and international growth.
“We don't lay off to cut costs, and that's true in this case,” Goodarzi writes. Intuit plans to hire about 1,800 new people with strategic functional skill sets, primarily in engineering, product, and customer-facing roles such as sales, customer success, and marketing—and expects That total will increase in fiscal year 2025, which begins in August. 1.
Of the employees who will leave Intuit, 1,050 are not meeting expectations based on a formal performance management process. The company believes they will be “more successful outside of Intuit,” Goodarzi writes. In addition, Intuit is reducing the number of executives — directors, SVPs, and EVPs — by about 10%, expanding some executive roles and responsibilities.
Intuit is also consolidating 80 tech roles at sites where it is expanding technology teams, including Atlanta, Bangalore, New York, Tel Aviv, and Toronto. The company is closing two sites in Edmonton and Boise that have more than 250 employees, with a certain number of employees moving to other sites within Intuit or leaving the company. Intuit is eliminating more than 300 company roles to “streamline operations and reallocate resources toward key areas of growth,” according to the email.
All departing U.S. employees will receive a package that includes at least 16 weeks of pay plus two additional weeks for each year of service. They will have 60 days before leaving the company, with a deadline of September 9. Employees outside the US will receive similar support, subject to local requirements.
“This allows time for everyone to reach their July confirmation date for restricted stock units and the July 31 eligibility date for the annual IPI bonus,” Goodarzi writes. Those not on the IPI plan will be able to reach the July or Q4 benefits eligibility date. According to the company, this is the most generous severance package Intuit has ever offered.
According to Goodarzi, “Intuit is in a position of strength. The company expects revenue of $14.4 billion in fiscal 2023, moving up 24 spots on the Fortune 500. For the period ending April 30, Intuit posted $6.7 billion in revenue, up 12%.