Intuit Inc. (NASDAQ:INTU) shares are trading lower Wednesday following reports that the company plans to reduce its workforce by approximately 17%, or about 3,000 employees worldwide, as part of a broader restructuring effort focused on streamlining operations and advancing its artificial intelligence initiatives.
- Intuit stock is among today’s weakest performers. Why is INTU stock falling?
Workforce Reduction And AI Push
According to a Reuters report citing an internal memo, CEO Sasan Goodarzi told employees that the layoffs are intended to reduce complexity and simplify the company's organizational structure in order to help deliver better products.
The company reportedly said the workforce reduction will allow it to sharpen its focus on key strategic priorities, including efforts to integrate AI technology across its services.
Reuters reported that Intuit has signed multi-year agreements with Anthropic and OpenAI to incorporate AI models into its software offerings and integrate Intuit's tax, finance, accounting and marketing capabilities into Claude and ChatGPT.
According to the memo, impacted U.S. employees will remain with the company through July 31 and will receive 16 weeks of base pay plus an additional two weeks for every year worked at Intuit as part of the severance package.
The company is also reportedly winding down its Reno and Woodland Hills offices as part of the restructuring initiative aimed at consolidating teams into key hubs.
Reuters reported that Intuit had approximately 18,200 employees across seven countries as of July 31.
Intuit Shares Edge Lower
INTU Price Action: At the time of publication, Intuit shares are trading 3.23% lower at $386.81, according to data from Benzinga Pro.
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