Intuit Cuts 3,000 Jobs in AI Pivot Despite Profitable Quarter

Intuit is eliminating roughly 17% of its workforce — about 3,000 employees — as CEO Sasan Goodarzi pushes the TurboTax and QuickBooks maker to restructure around AI. An internal memo framed the cuts as a way to simplify corporate structure and redirect resources toward AI product development, though the company declined to say whether executives or directors would absorb any pay reduction. Goodarzi earned $36.8 million in fiscal 2025.

The move fits a pattern across the industry. Amazon, Meta, Microsoft, Oracle, Cisco, Cloudflare, and Block have collectively shed tens of thousands of workers this year while citing AI reinvestment, even as most posted strong earnings and rising share prices. Tech layoffs have already passed 100,000 in 2026 and are on pace to exceed the prior two years.

What sets Intuit apart is that markets have not treated it as an AI winner. Its stock has lagged the S&P 500 over the past year amid concerns that incumbent SaaS vendors will struggle against AI-native competitors reshaping how software is built and consumed. The cuts arrive despite a solid quarter — $4.65 billion in revenue, up 17%, and net income up 48% — suggesting the restructuring is defensive positioning rather than a response to financial distress.