TurboTax parent Intuit is conducting mass layoffs across its operations in 2026, with over 3,000 workers expected to exit the company’s ranks. Initial reports suggested that part of the organization’s downsizing efforts was related to AI investments, but CEO Sasan Goodarzi quickly clarified to CNBC that the cuts had nothing to do with AI. Brushing aside the typical excuse for layoffs today, the CEO told CNBC’s Jim Cramer, “None of it had to do with AI.” Instead, he added, “Everything was about how we become more effective.”
While the statement hasn’t entirely put speculations to rest, Intuit’s workforce reduction plans are believed to be a part of its streamlining strategy, aimed at simplifying internal structures and redirecting efforts towards a “builder culture.” As we wait to find out what that means for the workforce, we have the details of the Intuit layoffs to discuss for now.
Intuit denies 2026 layoffs are linked to AI, but the technology is redefining operations nonetheless, with 17% of its workforce set to exit. (Image: Pexels)
Intuit Joins a Growing List of Companies Turning to Layoffs in 2026
The Intuit restructuring is expected to affect 17% of the company’s workforce, which is estimated to represent around 3,000 workers globally. The organization reportedly employed 18,200 workers across seven countries as of July 31, 2025. The numbers may have changed slightly since, but this still brings us to an expansive headcount gearing up for changes to operations. Intuit is expected to see about $300 million to $340 million in charges within the current quarter, all in relation to the restructuring.
The announcement of the Intuit layoffs led to a 13% decline in its shares in extended trading, with the stock down over 40% this year alone. The company did see revenue growth of about 10% YoY, however, the scale of expansion has been considerably slower than expectations.
Intuit did not share any specifics on who would be targeted within the organization or if the reduction in roles would reshape the departments and divisions at Intuit. What we do know is that affected employees in the U.S. will see July 31 as their last working day. As for severance, they will receive 16 weeks of base pay, along with two additional weeks of pay for every year at the organization.
Apart from workforce reductions, Intuit’s efforts to streamline operations will also result in the potential closure of its offices in Reno, Nevada, and Woodland Hills, California, allowing the business to consolidate forces at fewer, more central locations.
Intuit Aims to Streamline Operations, Become a “Faster, Leaner, and More Focused Company”
Early reports from Reuters, which were based on the emails shared with staff, suggested that one of the big investments that was fueling the shift was the desire to infuse more AI across its services. Considering the company’s 2024 layoffs, this would be an expected strategy. This does not come as a surprise to most, as artificial intelligence has been cited as the leading cause of layoffs this year. Much like others in the tech space, Intuit has also signed multi-year deals with the likes of Anthropic and OpenAI to license technology and integrate their AI models into its software.
At the same time, the company’s own performance and longevity have been questioned thanks to the rise of AI. CEO Goodarzi has pushed back against the idea of artificial intelligence as a threat to its operations, repeating that its customers still seek trustworthy services for their financial tasks. “Accuracy, compliance, being audited for these high-stakes decisions is why people use us,” he explained. “LLMs are not the place where people rely on to do their taxes and to run their business.” This conflicting narrative around AI returns us to questions about the utility of the technology and its role as both the threat and the solution.
The primary goal of the layoffs, as previously stated, is to streamline operations at Intuit and eliminate existing complexity in structure and function. The company reports that its operations are impaired by too many layers of management and its layoff plans are driven by a desire to eliminate “coordination-heavy roles.” The office closures should help bring the workforce together in function and physical operations, and the integration of TurboTax and Credit Karma should further aid matters along. The organization is also expected to pull back on its Mailchimp operations, further aiding in its change in strategy.
As the Tech Layoffs Grow, So Does the Complexity of Sentiments Around AI
The latest report from Statista, released on May 12, shows that the tech industry has already cut over 100,000 jobs worldwide, and we’re just about halfway through 2026. The layoffs added up to 81,700 in the first quarter alone, marking the highest quarterly figure since early 2023. While the report states that the layoffs have not reached the levels seen during the peak of the previous wave, the numbers are still concerning. This time around, a large majority of the cuts have been linked to AI.
While some have occurred as a result of reduced need for human labor or a strategy driven by greater investments in AI technology, it is also obvious that AI has disrupted business operations and dethroned many organizations from their positions in their respective industries. While some employers may not lay the blame on AI, the narrative around the technology is certainly reshaping how organizations position themselves and the future of their operations.
This situation is far from ideal as we continue to understand just how efficient the technology is and how it can be employed across roles and departments. As we wait to see the long-term effects of this technological disruption, we also hope to learn just when this era of layoff-driven strategies will come to an end.
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