Intuit, the maker of TurboTax and QuickBooks, is cutting about 3,000 roles — roughly 17% of its global workforce — as the company pivots further toward artificial intelligence and tries to streamline operations. Affected U.S. employees will exit on July 31 and receive 16 weeks of base pay plus an extra two weeks for each year of tenure.
AI-driven restructuring
The layoffs come despite strong revenue growth. Intuit reported $8.6 billion in third-quarter revenue, up 10% year-over-year, and raised its full-year guidance to $21.34–$21.37 billion — implying 13–14% growth. The company expects restructuring costs of $300 million to $340 million, most of which will be recognized in fiscal Q4 ending July 31, 2026. Intuit is also closing offices in Reno, Nevada, and Woodland Hills, California, as part of the reorganization.
CEO Sasan Goodarzi has previously emphasized that AI is reshaping Intuit’s products and internal processes. The job cuts follow a similar pattern at several other large tech firms that have cited AI-driven efficiency gains when announcing reductions earlier in 2026.
Severance and closures
The severance package for U.S. employees includes 16 weeks of base pay, with an additional two weeks per year of service. That matches or exceeds what many tech companies have offered in recent rounds of layoffs. The company did not detail severance terms for non-U.S. workers, but said the restructuring will affect all regions.
Closing the Reno and Woodland Hills offices means Intuit will consolidate its physical footprint. The company hasn’t said how many employees work at those sites or whether remote work will expand to fill the gap.
Broader tech landscape
Intuit’s announcement came the same day Meta cut roughly 8,000 jobs as part of a planned 10% workforce reduction. Other companies including Standard Chartered, Block, Amazon, Dune, and Pinterest have pointed to AI-driven efficiency in earlier 2026 layoffs. According to Layoffs.fyi, more than 140 tech companies have shed over 111,000 roles so far this year.
The simultaneous cuts suggest that AI adoption is accelerating cost-cutting across the sector, even as revenue and profits remain strong at many firms. Intuit’s raised guidance indicates that the company expects its AI investments to pay off quickly, though the human cost is substantial.
With the July 31 exit date approaching, former employees will soon be searching for new roles in a market where more than 100,000 other tech workers are also competing for positions. Intuit’s next quarterly report, due in August, will show whether the restructuring helped margins meet the higher guidance.
