Intuit Cuts 3,000 Jobs Despite Strong Earnings, CEO Denies AI Role

Quick Facts

• Intuit is cutting 3,000 jobs, representing 17% of its 18,200-person workforce
• The company reported strong Q3 earnings with $8.56 billion revenue and 10% growth
• CEO Sasan Goodarzi insists the layoffs are not AI-related despite multi-year deals with OpenAI and Anthropic

Intuit announced on May 20 that it will eliminate approximately 3,000 positions across its global workforce. The cuts affect 17% of the company’s 18,200 employees and will trigger restructuring charges of $300 million to $340 million.

The layoffs come despite strong financial performance. Intuit reported adjusted earnings of $12.80 per share on $8.56 billion in revenue for its fiscal third quarter ended April 30. The results beat analyst expectations of $12.57 per share and $8.61 billion in revenue.

Revenue grew 10% year-over-year, marking the slowest growth rate since 2024. The company raised its fiscal 2026 guidance, now expecting adjusted earnings of $23.80 to $23.85 per share and revenue of $21.34 billion to $21.37 billion.

Investors reacted negatively to the news. Intuit’s stock dropped 11-13% in after-hours trading following the announcement. The stock has fallen roughly 41% this year, significantly underperforming the broader market.

CEO Denies AI Connection

CEO Sasan Goodarzi emphatically denied that artificial intelligence drove the workforce reduction. “None of it had to do with AI. Everything was about how do we become more effective,” Goodarzi told CNBC’s Jim Cramer.

The CEO attributed the cuts to reducing management layers and eliminating “coordination-heavy roles” tied to operational complexity. He said the company needed to remove duplicative functions after integrating Credit Karma and TurboTax more closely.

“As we look ahead, we are further scaling our growth engines and architecting an organization that operates with greater velocity to deliver durable long-term growth,” Goodarzi said in a public statement.

AI Investments Continue

Despite denying AI-driven layoffs, Intuit has signed multi-year deals with Anthropic and OpenAI to embed their models into its tax and finance platforms. The company is working to integrate personalized finance and tax capabilities into AI assistants like ChatGPT and Claude.

Goodarzi defended against AI disruption concerns, stating: “People spend seven times more on tax and accounting experts as they do on software, because people don’t buy code, they buy confidence.”

Intuit will close its Reno and Woodland Hills offices and consolidate teams into key hub locations. US employees affected will have a final day of July 31, with severance of 16 weeks of base pay plus two additional weeks per year of tenure.

Industry Pattern

This marks Intuit’s second major restructuring in two years. The company cut about 1,800 employees in July 2024, meaning roughly 4,800 positions have been eliminated in less than two years.

The tech industry has cut more than 100,000 jobs in 2026, with 179 layoffs impacting 113,863 individuals. Nearly 48% of layoffs tracked through April were explicitly attributed to AI and automation, though experts debate how much represents genuine automation versus “AI washing.”

Read more: Intuit cuts 17% of its staff to focus on AI but refuses to blame AI