intuition The company, the parent company of TurboTax, Credit Karma and QuickBooks, cut about 17% of its workforce on Wednesday, but CEO Sasan Goodarzi said the job cuts were aimed at streamlining operations and improving execution rather than replacing employees with artificial intelligence.
“None of it had anything to do with AI,” Goodazzi told Jim Cramer on CNBC’s “Mad Money.” “It was all about how can we be more efficient?”
Intuit’s layoffs come amid concerns that advances in generative AI could lead to a significant spike in unemployment, especially in high-tech industries. As of this week, 114,173 tech workers have been laid off through 2026, according to Layoffs.fyi. Companies including microsoft, Meta and Amazon Companies have announced thousands of layoffs this year while ramping up investment in artificial intelligence infrastructure and products.
As for Intuit, Goodarzi said the layoffs are part of a broader effort to simplify Intuit’s organizational structure and create what he described as a faster-moving “builder culture.”
“As a result, we came up with three areas that will drive workforce reductions,” he said.
Goodarzi said the headcount reductions allowed Intuit to more tightly integrate Credit Karma and TurboTax, reduce layers of management, eliminate “coordination-heavy roles” associated with operational complexity, and remove duplicate functionality.
The comments come as investors increasingly debate whether generative AI tools from companies like OpenAI and Anthropic have the potential to disrupt traditional software businesses. Intuit stock has fallen about 41% this year.
Goodarzi dismissed the idea that artificial intelligence poses a near-term threat to Intuit’s core business.
“People spend seven times more on tax and accounting professionals than they do on software,” he said, “because people don’t buy code, they buy trust.”
Goodarzi also argued that large language models alone are unlikely to replace the Intuit platform for high-stakes financial tasks.
“Accuracy, compliance, being audited for these high-stakes decisions is why people use us,” he said. “LLM is not a place people rely on to pay their taxes or run their businesses.”
Intuit released its quarterly results after the close on Wednesday, with revenue of $8.56 billion, slightly ahead of analysts’ expectations of $8.54 billion, and adjusted earnings per share of $12.80, beating the consensus estimate of $12.57.
