Intuit announced a significant workforce reduction of 17%, impacting over 3,000 employees, as the company restructures amid the ongoing artificial intelligence boom. Following this news, Intuit shares plummeted 11% in after-hours trading. The restructuring is expected to incur charges between $300 million and $340 million, predominantly in the current quarter. Despite the layoffs, Intuit reported adjusted earnings of $12.80 per share and $8.56 billion in revenue for its fiscal third quarter, surpassing analyst expectations.
This downsizing reflects broader concerns within the tech sector, where companies like ZoomInfo and Meta are also cutting jobs in response to fears that AI advancements may disrupt traditional software offerings. Intuit’s stock has faced a challenging year, down over 40%, contrasting sharply with the S&P 500’s 8% gain.
Investors should note that while Intuit has lifted its fiscal 2026 earnings forecast, the ongoing layoffs and restructuring efforts signal a strategic pivot that may influence its competitive positioning in a rapidly evolving market.
Source: cnbc.com