JAKARTA - Intuit, a United States tax and accounting software company, will cut 17 percent of its full-time employees or nearly 3,000 positions worldwide.
As reported by The Straits Times citing Reuters, Thursday, May 21, the decision caused Intuit's shares to fall 14 percent after the May 20 trading close. Investors are still concerned about the impact of artificial intelligence or AI on the company's main business.
Intuit is known for TurboTax, a tax software that is one of its largest sources of revenue. The company also has QuickBooks and Credit Karma.
The problem is that large language models can now mimic premium tax guidance services like TurboTax without requiring exclusive financial data owned by the company. This is starting to put pressure on Intuit's position.
Intuit shares are down 42 percent so far in 2026 on concerns that AI could disrupt its tax software business.
The employee cuts are said to simplify the organizational structure and help the company focus on key areas, including AI. According to the annual report, Intuit had around 18,200 employees in seven countries as of July 2025.
Intuit also lowered its TurboTax revenue forecast for fiscal year 2026 to $5.277 billion to $5.282 billion. Previously, the company had forecast TurboTax revenue of $5.305 billion to $5.33 billion.
Intuit CEO Sasan Goodarzi said total tax filings with the Internal Revenue Service, or IRS, the U.S. tax agency, are expected to be down nearly 30 basis points this season. The figure is about two million lower than the general economic estimate.
Goodarzi said the decline was the sharpest industry contraction since the post-Covid-19 period and weighed on results across all customer groups.
He also said Intuit would raise prices in the upper segment of its portfolio. The company also prepared an expansion of the platform in August.
On the other hand, Intuit is getting more serious about partnering with AI companies. One of them is through a multi-year partnership with Anthropic. The partnership is part of Intuit's strategy to embed AI tools into its various tax, financial, and accounting platforms.
Intuit is not the only tech company streamlining its organization amid AI pressures. On May 20, Meta Platforms continued its plan to lay off 8,000 staff, including reportedly more than 100 people in Singapore.
Cisco last week also said it would cut about 4,000 jobs in a restructuring focused on AI. ZoomInfo and Cloudflare previously announced 20 percent employee cuts.
Intuit is now part of a line of technology companies that are cutting employees while reconfiguring their businesses amid the pressures and opportunities of AI.
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