MOUNTAIN VIEW, California, May 23, 2026, 10:59 PDT
- Intuit said it will cut around 17% of its full-time staff, or about 3,000 roles, removing management layers, duplicate positions and trimming Mailchimp investment.
- Investors are already asking if artificial intelligence could hurt TurboTax’s pricing power, as the software can automate tasks and answer questions.
- Nasdaq stayed shut Saturday. Intuit finished its last session at $319.94 following a choppy week for the stock.
Intuit said it will cut around 3,000 jobs and shut its Reno and Woodland Hills offices. The TurboTax parent is making the move as it pushes further into artificial intelligence and looks to protect its main tax business.
Timing is key. Intuit made the layoffs during its tax-season quarter. The company lifted its full-year revenue guidance but cut its TurboTax revenue outlook, stoking Wall Street’s worries that cheaper AI tools might reduce the value of some tax-prep software.
Intuit is cutting about 17% of its staff and expects related charges of $300 million to $340 million, mostly booked in its fiscal fourth quarter through July 31. The company said most of the restructuring should wrap up by the end of the first quarter ending Oct. 31, pending local legal and consultation processes.
Intuit CEO Sasan Goodarzi told staff there are “too many organizational layers” and that the company will cut roles that depend on too much coordination. The plan cuts back on overlap between TurboTax and Credit Karma, and also pulls investment from Mailchimp, the email marketing firm Intuit picked up in 2021. Intuit Inc.
“We believe we can serve more customers and deliver breakthrough products that fuel our customers’ success by reducing complexity and simplifying our structure,” Goodarzi said in a memo filed with regulators. U.S. workers hit by the layoffs will leave by July 31 and get 16 weeks of base pay, plus two additional weeks for every year at Intuit. Intuit Inc.
Intuit posted higher revenue and earnings for the quarter ended April 30. Revenue climbed 10% to $8.56 billion, and non-GAAP EPS came in at $12.80. The company also raised its fiscal 2026 revenue target to between $21.341 billion and $21.374 billion. Board approved an $8 billion share buyback plan.
Intuit’s main problem was with its lower-income TurboTax customers, CEO Goodarzi said. Speaking to analysts, he admitted Intuit got squeezed by price with do-it-yourself filers earning under $50,000. “We lost on price,” Goodarzi said. He said the company will adjust its lineup and prices for these simpler filers. The Motley Fool
TD Cowen’s Jared Levine said Intuit is “in the penalty box” after the company missed what the buy side wanted for TurboTax sales. Levine said the result might add to concerns about AI risk and increased competition for TurboTax, but he is still keeping his buy on the stock. Investors
Intuit CEO Sasan Goodarzi told analysts on the earnings call that the cuts weren’t because of AI. “This was not about AI,” he said. Goodarzi also said Intuit still uses AI internally and in products. CFO Sandeep Aujla said most of the cost savings will hit the bottom line, though some will fund growth areas. The Motley Fool
Intuit is joining tech names slashing jobs to steer more funds to AI or streamline operations. Reuters reported that Block, Amazon and Pinterest also unveiled layoffs this year, with AI-related efficiency gains used as a reason in some cases.
Intuit’s plan could cut costs before it can boost revenue. The company said in a filing that the restructuring benefits might take longer than forecast and warned on possible delays, disruption to business, competition, AI rollout, tax and business rules, and product accuracy.
Intuit is pitching to investors that it can keep growing its tax business and cut costs at the same time. Management needs to show both, while TurboTax faces new attention and general AI tools move into the advice territory that built TurboTax’s margins.
