Intuit's stock has been hammered this year as investors worry that generative artificial intelligence models could threaten software companies.
Tax and finance software maker Intuit said Wednesday that it's cutting 17% of its full-time workforce, the latest tech company to announce a mass downsizing during the artificial intelligence boom. Shares tumbled 11% in extended trading.
The decision will affect over 3,000 people, based on the company's last reported employee count of 18,200. The restructuring will trigger $300 million to $340 million in charges, mostly in the current quarter, Intuit said.
"As we look ahead, we are further scaling our growth engines and architecting an organization that operates with greater velocity to deliver durable long-term growth," Intuit CEO Sasan Goodarzi said in a statement.
Intuit, which makes QuickBooks and TurboTax, has been hammered by investors this year, alongside a broader downdraft in software, as Wall Street fears that AI will displace some products and services from established companies. Intuit shares are down more than 40% this year, while the S&P 500 has gained roughly 8%.
ZoomInfo and content delivery network provider Cloudflare announced earlier this month that they will each will trim 20% of headcount. Cisco said last week that it's cutting its workforce this quarter by fewer than 4,000 jobs, representing less than 5% of total employees. On Wednesday Meta moved forward with plans to lay off 8,000 people.
In addition to announcing layoffs, Intuit reported earnings on Wednesday. The company finished the fiscal third quarter with $12.80 in adjusted earnings per share on $8.56 billion in revenue for the period, which ended on April 30, after the tax filing deadline. Analysts polled by LSEG were looking for $12.57 per share and $8.61 billion in revenue.
Revenue grew 10% from a year ago, the slowest rate of expansion for any period since 2024. Net income rose about 9% to $3.06 billion.
Intuit lifted its forecast for the 2026 fiscal year. The company now expects $23.80 to $23.85 in adjusted earnings per share, with $21.34 billion to $21.37 billion in revenue. The LSEG consensus called for $23.21 per share in earnings and $21.23 billion in revenue.
"We believe we can serve more customers and deliver breakthrough products that fuel our customers' success by reducing complexity and simplifying our structure to become a faster, leaner, and more focused company," Goodarzi wrote in a memo to employees.
The company has too many management layers, and it will bring teams together physically to increase collaboration, with offices closing in Reno, Nevada, and Woodland Hills, California, Goodarzi told employees. Intuit is eliminating redundant roles after integrating TurboTax and Credit Karma, and it will pull back on its Mailchimp operations, Goodarzi wrote.
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