TurboTax parent company Intuit is laying off about 17 percent of its global workforce, or roughly 3,000 employees.
The news: The company, which has an office in Toronto, told employees in an internal memo earlier this week that it’s reducing investments in certain areas so it can pour resources into what it calls its “big bets.” According to an investor presentation from last year, those bets are meant to “drive durable growth over the long term, with a strategic focus on AI.”
The internal memo said the company is cutting investment in its Mailchimp product, as well as its engineering and product organizations. The layoffs include office closures in both Reno, Nev., and Woodland Hills, Calif. BetaKit has reached out to Intuit for details on how its Canadian operations will be impacted.
From the source: While Intuit didn’t explicitly blame these layoffs on AI, it has before. In 2024, the company shuttered its Edmonton office as part of a layoff that affected 1,800 employees. In an email to employees at the time, CEO Sasan Goodarzi cited the “AI revolution” and that the company “must accelerate” investments in areas most important to its future success. The company has also recently partnered with Anthropic and OpenAI.
Following the thread: The memo said that Intuit believes it can serve more customers and deliver “breakthrough” products by reducing complexity and simplifying its structure. That aspiration was reflected in its Q3 earnings statement, released yesterday, which upgraded its 2026 forecast to expect more than $100 million in additional revenue. The restructuring itself, however, will cost Intuit up to $340 million.
Final thought: Intuit is far from alone in reorganizing business in the AI era. Meta just laid off 8,000 employees, citing its own AI ambitions, while Microsoft is opening up buyouts to roughly the same number of its employees, and Cisco cut 4,000 jobs last week. Amazon CEO Andy Jassy wrote a memo last year that AI efficiencies would bring headcount reductions to the company, and has promptly laid off about 30,000 people since October.
Feature image courtesy Intuit.