Intuit is cutting hundreds of workers in San Diego to focus on AI

Intuit, the financial software company behind TurboTax, is cutting 277 jobs in San Diego as part of a broader restructuring to prioritize artificial intelligence. The companywide layoffs total nearly 3,000 positions, representing 17% of its workforce, with roles in engineering, product, marketing, and leadership most affected. CEO Sasan Goodarzi framed the move as necessary to execute a new AI-focused growth strategy with greater speed and discipline. The restructuring includes a $300 million to $340 million write-off, primarily in the current quarter, and aims to streamline management layers and reduce overlap between TurboTax and Credit Karma. Affected employees will receive 16 weeks of base pay plus two additional weeks per year of tenure, along with six months of health insurance, mental health support, and career transition services. Intuit’s stock has fallen nearly 43% this year despite reporting $8.6 billion in revenue for its third fiscal quarter, up 10% year-over-year, with operating income rising 8% to $4 billion. The company’s consumer segment, based in San Diego, contributed $5.3 billion to revenue. The layoffs follow a similar but smaller round in July 2024, reflecting a broader trend in the tech industry where AI adoption leads to workforce reductions. Analysts describe this trend as the ‘SaaS-pocalypse,’ where companies cut software staff to invest in AI tools like Claude Cowork, which can automate coding and workflows. Tech layoffs this year have already exceeded 100,000, with companies like Amazon, Cisco, Meta, Microsoft, and Oracle also reducing headcounts. Intuit did not respond to requests for further comment.