Intuit Inc. has announced plans to dismiss 1800 employees to focus on artificial intelligence development.
In its Wednesday update, the California-headquartered fintech company Intuit revealed plans to downsize to focus on AI development. The Intuit team confirmed that 10% of the employees will leave the office.
The company confirmed that the layoffs were part of Intuit’s restructuring plan of steering the business towards prosperity.
Intuit Inc. Downsizes
In a July 11 newsletter, Intuit chief executive Sasan Goodarzi confirmed that the layoffs will affect 1800 employees.
The executive highlighted that the layoff will be done in phases, whereby 1050 staff will be replaced with new hires. Goodarzi stated that Intuit had emailed the low performers about their dismissal.
However, the CEO believes the hundreds being dismissed due to poor performance will prosper outside Intuit. He added that the fintech company plans to eliminate some of the positions at the company, which will see 300 employees dismissed.
Furthermore, as part of the restructuring plan, the Intuit team will shut down regional offices in Boise, Idaho, Alberta, Canada and Edmonton. Intuit reported that the closedown will affect 250 employees who relocate to other branches or leave the company.
Intuit to Focus on AI Development
In the report, the CEO explained that the layoffs and closedowns will enable Intuit to streamline work processes and redirect resources toward its core business.
The fintech company will focus on pursuing its AI project, critical for business to success. Intuit plans to recruit new hires in the AI sector and invest in improving its technological structure. The CEO confirmed that Intuit will hire 1800 staff next fiscal year.
Also Intuit will have new openings in engineering, product development, and support departments in 2025.
The executive clarified that the dismissed staff will not be replaced with AI but with new hires competent in their work. Intuit believes that AI is a transformative force that will boost productivity in the workplace.
With the evolution of AI, tech industry players have expressed concerns that advanced technology will replace humans. AI development has signalled the automation of key business processes.
However, Intuit still believes that AI will unlock human potential and bring about changes that will be resilient to the company.
Critics Project AI to Cause Job Displacement
The new hires expected to join the company will enable Intuit to migrate its products and service in AI smoothly. The executive confirmed that the mass layoffs aimed at cementing Intuits to its core principle.
The Iran national believes that the ongoing changes in the company were critical for Intuit. The financial provider will provide six months of health insurance to dismissed staffs and support them in their career transition.
He anticipates that the company will invest more in Intuit’s critical areas to improve customer relations and stimulate business growth. The Intuit restructuring plans were criticized on X by the famous technologist Dare Obasanjo.
In his X post, Obasanjo described the Intuit layoffs to aggravate the feast and famine in today’s tech industry. The tech expert noted that Intuit branded the layoff as the most dismissed employee, failing to meet the company’s expectations.
Other X users encouraged the dismissed employees to find better positions in different industries. News concerning the layoff triggered Intuit’s stock price to tumble by 16% to trade at $626 in the last 24 hours.
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