Intuit cutting 10% of workforce in reorganization

In a regulatory filing earlier, Intuit disclosed that the company announced a plan of reorganization focused on reallocating resources to the company’s key growth areas. “As part of the Plan, approximately 1,800 employees will exit the company and the company will close its Boise and Edmonton sites in service to growing technology teams and capabilities in strategic locations. The company expects to hire a nearly equivalent number of employees in fiscal 2025 to support the company’s declared growth areas and expects overall headcount to grow in fiscal 2025 and beyond. The company estimates that it will incur approximately $250M to $260M in charges in connection with the Plan, primarily in its fourth fiscal quarter ending July 31, 2024. These charges consist of approximately $217M to $227M in future cash expenditures related to severance payments and employee benefits and approximately $33M in non-cash charges for share-based compensation and charges associated with the site closures. The company expects substantially all of the actions associated with the Plan to be completed by its first fiscal quarter ending October 31, 2024, subject to local law and consultation requirements.” In an email to the company’s employees regarding the Plan, Sasan Goodarzi, the company’s Chief Executive Officer, stated in part: “Today we will be communicating to approximately 1,800 employees, which is 10% of our workforce, that they will be leaving Intuit. These are extremely painful decisions for me and my team because we deeply understand the impact these decisions have on our friends and colleagues who will be leaving. We are very grateful for the great work they have done and the amazing contributions they have made while at Intuit. We do not do layoffs to cut costs, and that remains true in this case. The changes we are making today enable us to allocate additional investments to our most critical areas to support our customers and drive growth as detailed below. This includes reinvesting in the necessary skills and capabilities to support these areas, and, as such, we will hire approximately 1,800 new people primarily in engineering, product, and customer facing roles such as sales, customer success, and marketing. In context of the actions we are taking today, we expect our overall headcount to grow in FY25 and beyond.”