In an effort to increase its investments in artificial intelligence, Intuit has disclosed a restructuring strategy that involves the closure of two locations and the termination of 1,800 employees. This action is anticipated to result in a 10% decrease in Intuit's personnel and a cost of $250 million to $260 million. These expenses, which encompass severance, share-based compensation, and site closures, will be primarily incurred in the current quarter. The restructuring will result in the termination of Intuit's facilities in Edmonton, Canada, and Boise, Idaho, as the company plans to expand its technology teams in strategic locations. Furthermore, Intuit will decrease its executive team by 10% while simultaneously increasing the scope of specific roles and responsibilities. The parent company of TurboTax anticipates that these actions will be finalized by the conclusion of its fiscal first quarter.
In order to facilitate critical growth sectors, Intuit intends to expand its workforce by nearly the same magnitude in fiscal 2025, regardless of the redundancies. CEO Sasan Goodarzi declared that the organization's objective is to expedite investments in artificial intelligence and data, with an emphasis on facilitating the connection between customers and specialists through AI-driven channels, enhancing money solutions, and fostering international expansion. In the fiscal third quarter, Intuit reported a 12% increase in revenue and increased its full-year outlook, indicating that the company is performing well despite the restructuring efforts.
