Intuit Layoff: Company Announces 1,800 Job Cuts

Intuit Layoff: Company Announces 1,800 Job Cuts

What is the reason for Intuit’s layoffs?

On July 10th, Intuit, a leading multinational software company, revealed a major restructuring plan that will result in the loss of 1,800 jobs and the closure of its Edmonton, Canada and Boise, US offices. This decision is driven by the company’s new focus on artificial intelligence (AI) investments.

Headquartered in California, Intuit has made significant strides in developing generative AI-powered tools for accounting and tax preparation, catering primarily to small and medium-sized businesses. Their product lineup includes well-known names such as QuickBooks, Credit Karma, and TurboTax.

CEO Sasan Goodarzi communicated to employees that these changes are not about cutting costs but about redirecting resources to critical areas that will drive growth and enhance customer support. The company plans to hire around 1,800 new employees, mainly in engineering, product development, sales, customer success, and marketing roles.

Plans for Accelerated Investment and Growth

Intuit aims to increase investments and hiring in sectors like data and AI, network teams, fintech, human capital management, customer experience, and international expansion. This strategic move is expected to boost the company’s headcount starting in the 2025 fiscal year.

Layoffs and Role Consolidations

Approximately 1,050 employees, who have been deemed underperforming by Intuit, will be laid off. About 10% of the company’s executives will also be let go, while others will see their roles and responsibilities expanded. Additionally, 80 technology positions will be consolidated into growing tech hubs such as Atlanta, New York, Bangalore, Tel Aviv, and Toronto. The closing sites currently employ over 250 people, some of whom will be relocated. Moreover, 300 roles across the company will be eliminated to streamline operations and focus on key growth areas.

Message from the CEO

Goodarzi acknowledged the challenging nature of the day and expressed gratitude to those who have contributed to Intuit’s success. He also conveyed excitement for the company’s future, emphasizing the potential for AI to revolutionize customer experiences.

“With the strength of our people, culture, and mission, we are positioned to take advantage of this AI revolution and revolutionize our customers’ experiences to deliver undisputed benefits in ways that we could never imagine. Today is day one. Together, we will focus on the future and all the possibilities to power prosperity around the world,” he concluded.

What are the rules for severance pay in Ontario?

Intuit employees in Canada who are non-unionized and facing job loss due to downsizing or corporate restructuring are entitled to their full severance pay. This severance package, which can extend up to 24 months of pay, depends on several factors. In Ontario, large-scale layoffs involving 50 or more employees might result in increased severance entitlements. Employees who do not

receive their full severance can seek compensation. It is advisable to consult with legal employment experts to ensure fair treatment.

How Can Whitten and Lublin Employment Law Firm Support You?

Navigating job loss or termination can be overwhelming. At Whitten and Lublin Employment Law Firm, we’re here to ease your burden. Our seasoned team of employment lawyers is dedicated to protecting your rights and guiding you through this challenging time. We’ll explore all legal avenues to ensure you receive the compensation you’re entitled to.

If you’ve been affected by the recent Intuit layoffs, reach out to us for a consultation. Schedule your appointment effortlessly through our online booking system or call (416) 640 2667 today to discuss your situation.