Bengaluru – Tax and accounting software provider Intuit said it would cut 17 per cent of its full-time workforce, sending its shares down 14 per cent after the bell on May 20 amid lingering fears of AI disruption.
The reduction of nearly 3,000 roles globally is expected to help simplify organisational structure and focus on key areas, including AI efforts.
Intuit had about 18,200 employees across seven countries as of July 2025, according to its annual report.
Investor worries over AI’s potential to disrupt Intuit’s tax software business have sent its shares down 42 per cent in 2026.
Intuit’s flagship financial product and one of its largest revenue drivers in TurboTax, alongside other accounting tools like QuickBooks and Credit Karma
But general-purpose large language models can now replicate TurboTax’s premium tax guidance capabilities without proprietary financial data, undermining a key pillar of Intuit’s competitive advantage.
Intuit lowered its forecast for fiscal 2026 TurboTax revenues to US$5.277 billion to US$5.282 billion, from its prior projection of US$5.305 billion to US$5.330 billion.
On a post-earnings call, chief executive Sasan Goodarzi said that total Internal Revenue Service tax filings are projected to drop nearly 30 basis points this season, roughly two million short of broader economic forecasts, marking the steepest industry-wide contraction since the post-Covid era and pressuring results across all customer demographics.
Mr Goodarzi also said Intuit plans to “take pricing actions at the higher end” of its portfolio, while announcing an expansion of its platform set for August.
AI partnerships, including a multi-year deal with Anthropic, are now central to Intuit’s strategy of embedding AI tools across its platforms and expanding its tax, finance, and accounting capabilities.
Intuit is the latest tech company to announce a mass downsizing amid AI disruption. On May 20, Meta Platforms moved forward with plans to lay off 8,000 staff, including reportedly more than 100 in Singapore.
Networking equipment maker Cisco said last week it would cut about 4,000 jobs in AI-focused restructuring as orders surge, while sales intelligence and data provider ZoomInfo and content delivery network provider Cloudflare announced earlier in May that they would slash 20 per cent of head count. REUTERS
