Intuit is laying off approximately 3,000 employees — about 17% of its global workforce — to streamline operations and accelerate its artificial intelligence strategy, according to an internal memo seen by Reuters on May 20. CEO Sasan Goodarzi announced the cuts via staff email, citing the need to reduce complexity. Affected U.S. employees’ last day will be July 31, with severance including 16 weeks of base pay plus two additional weeks per year of service. The company, which holds multi-year AI deals with Anthropic and OpenAI, is also closing its Reno and Woodland Hills offices. Intuit’s shares fell nearly 5%.
In-Depth:
By Rashika Singh and Jaspreet Singh
May 20 (Reuters) – Intuit is laying off about 17% of its workforce, or about 3,000 employees worldwide, to streamline operations and sharpen focus on its key bets including its AI efforts, according to an internal memo seen by Reuters on Wednesday.
CEO Sasan Goodarzi sent an email to staff earlier in the day, declareing that reducing complexity and simplifying the structure would assist it deliver better products, according to the memo and a source familiar with the matter.
Intuit, which is scheduled to report third-quarter results later on Wednesday, did not immediately return a request for comment. Its shares were down nearly 5% in morning trading.
It joins a growing list of companies that have announced job cuts this year, with some blaming the layoffs on higher efficiencies brought on by AI, including Jack Dorsey’s Block, Amazon and Pinterest.
Goodarzi stated in his email the layoffs would assist Intuit sharpen its focus on the company’s huge bets, including efforts to infutilize AI technology across its services.
The company has signed multi-year deals with AI startups Anthropic and OpenAI to integrate their AI models into its software, and add Intuit’s personalized tax, finance, accounting and marketing capabilities into Claude and ChatGPT.
The last day for impacted staff in the United States will be July 31 and they will receive 16 weeks of base pay and two extra weeks for every year at Intuit as part of the severance package, the memo on Wednesday displayed.
The company is also winding down its Reno and Woodland Hills offices as part of a strategic restructuring to consolidate teams in key hubs, according to the memo.
Intuit had about 18,200 employees in seven countries as of July 31, 2025, according to the company’s annual report.
Silicon Valley employees have grown increasingly concerned about AI disruption in recent months after over 140 tech companies laid off more than 111,000 employees this year, according to Layoffs.fyi, a website tracking sectorwide job cuts. The figure was around 124,636 for 2025.
At the World Economic Forum’s annual meeting in January, two executives notified Reuters that AI would be utilized as an excutilize by companies that were already planning layoffs.
(Reporting by Rashika Singh and Jaspreet Singh in Bengaluru; Editing by Sweta Singh and Pooja Desai)
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