By Brody Ford and Dana Wollman
Bloomberg News
(TNS)
Intuit Inc. suffered its worst stock decline in more than two decades after announcing plans to cut about 17% of its staff and reporting slower TurboTax sales than anticipated.
The job reductions, which will affect about 3,000 workers, will trim costs while the financial software company invests in artificial intelligence products. They’re meant to simplify the organization and turn it into a “faster, leaner, more focused company,” Intuit said Wednesday in a statement that included fiscal third-quarter results.
The company said it expects to incur about $320 million in restructuring charges, largely in the current period.
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Several analysts also called out a small miss in revenue for TurboTax. This weakness reopens a debate over whether AI is hurting the business, according to Kirk Materne, an analyst at Evercore ISI.
Intuit shares fell 20% to $307.07 on Thursday, marking the worst single-day drop since March 2003. The company’s stock is now down 54% for the year.
Intuit is the latest tech company to have slashed its workforce this year. Meta Platforms Inc. on Wednesday alerted about 8,000 employees that they were losing their jobs, part of a previously announced restructuring aimed at reducing costs while the company invests heavily in artificial intelligence.
Like many in the software industry, Intuit is betting on AI features to help expand its business. “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,” Chief Executive Officer Sasan Goodarzi said in the statement.
This is the second major job reduction for Intuit in recent years. The company in July 2024 cut 1,800 employees, or about 10% of its workforce, saying it expected to rehire the same number of employees in other areas. Intuit had about 18,200 employees as of July 31, 2025.
In the quarter, which ended April 30, Intuit reported revenue increased 10% to $8.56 billion, ahead of analyst estimates. Profit, excluding some items, was $12.80 per share. Analysts, on average, projected $12.54 a share, according to data compiled by Bloomberg.
The company said revenue would increase by a range of 11% to 12% in the current period ending in July, compared with analysts’ average estimate of 8% growth. Adjusted earnings will be $3.56 to $3.62 a share. Analysts, on average, estimated $3.15.
Reuters reported earlier on the job cuts.
Photo credit: themillennial_ceo/Instagram
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Tags: intuit, job cuts, layoffs, revenue, stock decline, stocks, Technology, TurboTax
