Software maker Intuit to cut 3,000 jobs, CEO says layoff has nothing to do with AI

On Wednesday, US software maker Intuit joined a long list of tech companies who have cut thousands of jobs in recent months. Intuit CEO Sasan Goodarzi informed employees that the company was cutting 3,000 jobs globally, or nearly 17 per cent of its global workforce. However, unlike most companies that have cited AI as a reason for job cuts, Goodarzi has claimed that AI had nothing to do with this decision.

As per a report from Reuters, Sasan said in an internal memo that the move was meant to streamline operations, and improve execution, not replace workers with artificial intelligence. Intuit had around 18,200 employees in seven countries – including India – as of July 31, 2025.

The Intuit CEO went as far as claiming that AI was not a factor in the layoffs. He told CNBC, “None of it had to do with AI.” Instead, Sasan Goodarzi claimed that this was done to make the company “more effective.”

Keep in mind that many companies, including Amazon, Cisco and Microsoft, have previously laid off thousands of workers to focus more on AI. Just this week, Meta too fired 8,000 employees.

Why did Intuit cut jobs?

According to Goodarzi, the layoffs will allow Intuit to reduce management layers, eliminate “coordination-heavy roles.” That is, the company hopes to make its operations simpler. It also plans to integrate two of its products – Credit Karma and TurboTax – more closely together.

The restructuring also includes the closure of Intuit's Reno and Woodland Hills offices, with teams being consolidated into selected hubs. In the United States, affected employees will stay on until July 31. The severance package includes 16 weeks of base pay and an additional two weeks for every year worked at Intuit.

Intuit signed deals with OpenAI, Anthropic

Intuit has been expanding its AI plans for sometime now. The company previously signed multi-year deals with OpenAI and Anthropic to integrate their AI models into its software and to add Intuit's tax, finance, accounting and marketing capabilities into ChatGPT and Claude.

While the company dismissed AI as a reason for the layoffs, it also believes that the restructuring would help it focus on its 'big bets', including the broader use of AI across its services.

The cuts come amid a wider wave of job reductions across the technology sector. As per Layoffs.fyi, more than 140 tech companies had cut over 111,000 jobs in the first five months of 2026. In 2025, the entire layoff figure stood at 124,636.