Intuit is cutting roughly 3,000 employees — about 17% of its full-time workforce — and lowering its annual TurboTax revenue forecast, in one of the clearest signals yet that artificial intelligence is restructuring the consumer software industry from the inside out.
The company announced the cuts after the market closed Wednesday alongside fiscal third-quarter earnings. Shares fell roughly 13% in after-hours trading before stabilizing Thursday morning.
Chief executive Sasan Goodarzi told employees in an internal memo that Intuit needs to move with “far greater velocity, urgency, and discipline” as it builds what he called an “AI-native platform” across TurboTax, Credit Karma, QuickBooks and Mailchimp.
The company will close offices in Reno, Nevada, and Woodland Hills, California, with most affected U.S. employees exiting by July 31. Severance packages include 16 weeks of base pay plus two additional weeks for every year of service, along with July restricted stock unit vesting and bonus eligibility.
Intuit lowered its fiscal 2026 TurboTax revenue guidance to between $5.277 billion and $5.282 billion, down from a previous projection of $5.305 billion to $5.330 billion.
Goodarzi told analysts on the earnings call that the overall tax-filing industry contracted this season, with total IRS filings projected to decline by roughly 2 million versus broader economic forecasts — the steepest industrywide drop since the immediate post-COVID period.
The company expects to incur between $300 million and $340 million in restructuring charges, primarily in the fiscal fourth quarter ending July 31.
Importantly, the layoffs are not tied to collapsing business performance. Revenue rose 17% year-over-year to $4.7 billion in the latest quarter, GAAP operating income jumped 44%, and earnings per share increased 49%.
Instead, the cuts reflect a strategic decision to replace layers of human workflow with AI-powered systems.
“Operate as a single, unified team and platform,” Goodarzi wrote in the memo.
He also acknowledged that Intuit will “pull back” portions of Mailchimp operations, an implicit recognition that the company’s $12 billion acquisition of the email-marketing platform in 2021 has failed to produce the expected growth trajectory.
The move places Intuit squarely inside a broader corporate restructuring wave tied to artificial intelligence.
Meta Platforms is reassigning roughly 7,000 employees into AI-focused roles. Cisco Systems recently announced cuts of fewer than 4,000 jobs. Standard Chartered is eliminating nearly 8,000 support roles over four years. Oracle has already laid off more than 10,000 workers and is expected to reach 30,000 by year-end.
According to the 2026 layoff tracker maintained by Intellizence, more than 1,600 companies have announced mass workforce reductions since January, with AI increasingly cited as the rationale.
For workers, the Intuit announcement underscores a growing disconnect in corporate America: healthy earnings no longer guarantee job stability.
The company is profitable, growing and raising guidance in parts of the business — yet it is still eliminating nearly one-fifth of its workforce because executives believe AI systems can perform many tasks faster and cheaper.
For the roughly 30 million Americans who use TurboTax each year and the millions of small businesses operating on QuickBooks, the customer-facing changes may appear subtle at first. But behind the screen, fewer human accountants and support representatives will be available, while more interactions are expected to be handled by large language models trained on tax law and accounting workflows.
Whether that ultimately creates a better product, a cheaper product or both is the bet Intuit is now making.
JBizNews Desk
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