By Dean Seal and Kristin Broughton


Intuit plans to lay off 17% of its workforce, or about 3,100 employees, and invest the savings in "big bets" as it makes artificial intelligence a centerpiece of its business.

The maker of TurboTax and QuickBooks said Wednesday that slimming down its staff would improve efficiency companywide. The restructuring is expected to cost about $300 million to $340 million, most of which will be recognized in the current summer quarter.

Chief Financial Officer Sandeep Aujla said the layoffs are focused on coordination-related roles including project managers and business operations teams. Mid- and lower-level managerial roles are being removed as well.

The resulting company will be leaner and more focused, according to Aujla, who said the cuts weren't directly tied to Intuit's own use of AI.

"We've just got to make sure that more folks are at the forefront of dealing with the customers-and particularly in this age, it's around managing agents as opposed to you know managing a set of people," Aujla said.

Intuit didn't provide a projection of expected long-term savings from the layoffs. Those savings will be used to invest in the company's "big bets" and otherwise flow toward improving margins, Aujla said.

The Mountain View, Calif., company long known for its tax-preparation software has been remaking itself as an AI-first platform. It partnered with Anthropic earlier this year to build AI agents for its consumer and business clients, and teamed with OpenAI last year to deepen its use of generative AI models.

Intuit is the latest tech company to slash its workforce while pouring more resources into AI. Cisco made a similar move last week.

The job cuts were announced in tandem with the results from its critical tax-season quarter, which ran from February through April 30.

Revenue climbed 10% to $8.56 billion, just ahead of analyst targets, according to FactSet.

Consumer revenue was up 8% at $5.3 billion, including a 7% jump for TurboTax and 15% growth at Credit Karma. Its business-focused verticals recorded even bigger gains.

The company posted a profit of $3.06 billion, or $11.09 a share, compared with $2.82 billion, or $10.02 a share, in the same quarter a year earlier. Stripping out one-time items, adjusted earnings were $12.80 a share, beating analyst projections for $12.57.

For the full fiscal year, which ends July 31, Intuit raised its revenue growth expectations for both the business and consumer segments. Total revenue is expected to rise 11% to 12% for the final three months of the current fiscal year, with fourth-quarter adjusted earnings expected to hit $3.56 to $3.62 a share. Analysts polled by FactSet had been projecting $3.14 a share.

Intuit shares, which fell 4% during Wednesday's trading session, slumped another 11% to $342 after hours. Through Wednesday's close, the stock has dropped more than 40% this year.


Write to Dean Seal at dean.seal@wsj.com


(END) Dow Jones Newswires

05-20-26 1705ET