Intuit layoffs to impact hundreds of Bay Area workers as part of AI pivot

( KRON ) — Intuit Inc. is set to lay off hundreds of employees, with many of those impacted based in the Bay Area, according to state filings. The Mountain View-based financial tech company which specializes in business and personal finance software, will be cutting 384 jobs at its headquarters.

Additionally, the company plans to cut 215 jobs at its San Diego office. The California layoffs are part of broader cuts that will see the company cut about 1,800 employees — 10% of its workforce.

In a memo to employees , Intuit CEO Sasan Goodarzi implied that the layoffs are part of a broader shift toward AI.

“The era of AI is one of the most significant technology shifts of our lifetime,” the CEO said. “This is truly an extraordinary time — AI is igniting global innovation at an incredible pace, transforming every industry and company in ways that were unimaginable just a few years ago. Companies that aren’t prepared to take advantage of this AI revolution will fall behind and, over time, will no longer exist.”

Goodarzi also said that many of the impacted employees “are not meeting expectations.”

Employees who lose their jobs will receive severance that includes:

• A minimum of 16 weeks pay, plus two additional weeks for each year of service
• Six months of health care coverage
• Career transition and job placement service
• Immigration assistance for those who require it

The layoffs, which were announced last Wednesday, will take effect in September. All the job cuts are permanent, according to a state filing.

In an apparent move to help facilitate the company’s shift toward AI, Goodarzi also said Intuit would be hiring approximately 1,800 new people in engineering, product, and customer facing roles like sales and marketing.

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