Intuit Inc., the U.S. tax software company (stock code: INTU), has announced plans to lay off approximately 1,800 employees and close offices in Boise, Idaho, and Edmonton, Canada, which together represent 10% of its total workforce. CEO Sasan Goodarzi stated that this restructuring aims to reallocate resources into key growth areas, including AI.

In a letter to employees, Goodarzi emphasized that the layoffs are not cost-cutting measures but part of a plan to hire 1,800 new employees in the upcoming fiscal year 2025 to support the company's growth objectives. New positions will primarily focus on engineering, product development, and customer-facing roles such as sales and marketing.

The restructuring is expected to cost between $250 million and $260 million, including $217 million to $227 million in severance and employee benefits, along with approximately $33 million in non-cash expenses for stock compensation and office closures. The majority of these costs will be incurred in the fourth quarter of the current fiscal year. The company anticipates completing these restructuring actions by the end of the first fiscal quarter ending October 31, 2024.

As of July 2023, Intuit employs approximately 18,000 people across 10 countries globally. Following the announcement of the layoffs, Intuit's stock price fell around 3% to $634.40 in early trading on Wednesday, July 10.