The AI uprising and the layoff epidemic are closely intertwined and we see another example of it with the Intuit layoffs. The multinational company that specializes in financial software has announced its decision to fire 1,800 employees in favor of its AI pursuits, stating the importance of investing in key growth areas right now. Instead of solely focusing on job cuts, Intuit’s reorganization efforts will also circle back to rehiring workers to fill the gap created in specific fields. Intuit’s AI focus was outlined in great detail in the announcement, mapping out how they plan to move forward with maintaining and expanding on their dominance in their industry.
Intuit Layoffs Announced—1,800 Employees Will Be Replaced
Intuit’s jobs cuts will affect 1,800 employees, which means 10 percent of their workforce will be replaced by the 2025 fiscal year. Announcing the decision, the company stated that their plan to go ahead with layoffs has nothing to do with cost cuts but was instead intended to help them divert additional investment to critical areas to support customers and drive growth.
“Today we will be communicating to approximately 1,800 employees, which is 10% of our workforce, that they will be leaving Intuit. These are extremely painful decisions for me and my team because we deeply understand the impact these decisions have on our friends and colleagues who will be leaving. We are very grateful for the great work they have done and the amazing contributions they have made while at Intuit. “
—Intuit CEO Sasan Goodarzi
Intuit’s employee cuts will be followed up by an increase in its headcount in FY25, where it plans to rehire approximately the same number of workers in engineering, product, and customer-facing roles such as sales, customer success, and marketing. From their statement, it is apparent that the company expects to spread out its hiring plans and fill the roles more slowly as it tracks progress toward its other goals.
Who Will Be Impacted by Intuit’s Job Cuts?
The Intuit layoff plans have been mapped out for employees and the general public alike, and they’re very clear about who the layoffs will affect. While their company’s AI focus is largely directing the job cuts, it also appears that the company has identified employees who are not meeting their targets at the organization. Approximately 1,050 of the employees being let go have failed to meet the company’s expectations.
Additionally, 80 technology roles are being consolidated to sites like Atlanta, Bangalore, New York, Tel Aviv, and Toronto, and two sites in Edmonton and Boise are being shut down. This shutdown will affect approximately 250 employees. Another 300 roles will be eliminated to streamline roles at the organization and the number of executives at the organization will be brought down by approximately 10 percent.
The numbers suggest that changes are occurring across different departments and management levels within the organization, showing its commitment to reorganizing its resources and manpower. Layoffs at Microsoft and Google earlier this year have shown that senior executives are not exempt from these layoff trends, spelling a troubling time for employees both new and old.
Compensation for Intuit Employees Affected By the Layoffs
Along with Intuit’s AI focus and strategic reallocation plans, we also have details of how they plan to compensate employees. US employees are expected to receive a minimum of 16 weeks of pay with two years added for every year of service. All the employees who were informed of their roles being cut on July 10 have 60 days to plan their next step with their last working day on September 9, 2024. Similar support will be extended to other countries depending on local regulations.
The company is also giving employees time to reach their vesting date for Restricted Stock Units (RSUs) and making good on any bonuses they are eligible to receive on Individual Incentive Plans (IPI). Apart from financial incentives, employees will also have access to six months of health insurance coverage as well as access to Employee Assistance Programs, job placement services, and immigration support if necessary.
These benefits are very useful during such periods of transition when employees have to reserve the resources they have and look for an alternate source of employment in a rush. Providing financial support is one of the best forms of support but other areas of assistance such as career counseling and emotional support should not be overlooked.
