Intuit shares fall 13% after 3,000-job cuts

Intuit shares fell about 13% in extended trading on May 20 after the TurboTax and QuickBooks maker said it would cut roughly 3,000 jobs, or about 17% of its full-time workforce, as part of a restructuring tied to its artificial intelligence push. The company disclosed the reductions alongside fiscal third-quarter results and said the move would simplify its organizational structure. CEO Sasan Goodarzi told employees the changes were intended to reduce complexity and help Intuit move faster. The company said it expects $300 million to $340 million in restructuring charges, mostly in the current quarter. ### Why did investors react so hard to the announcement? Intuit shares dropped to about $332 in after-hours trading on May 20 from a regular-session close of $383.93, a decline of roughly 13.4%. The selloff came even as Intuit raised its full-year fiscal 2026 guidance. CNBC reported that quarterly revenue came in just below analyst expectations, while revenue growth slowed to 10%, the weakest pace since 2024. (cnbc.com) The company reported adjusted earnings of $12.80 per share on $8.56 billion in revenue for the quarter ended April 30. Analysts polled by LSEG had expected $12.57 per share and $8.61 billion in revenue, according to CNBC. Intuit also said it now expects full-year adjusted earnings of $23.80 to $23.85 per share and revenue of $21.34 billion to $21.37 billion. (finance.yahoo.com) ### How large is the restructuring, and who is affected? Intuit had about 18,200 employees in seven countries as of July 31, 2025, according to its annual report cited by Reuters. That makes the planned reduction of roughly 3,000 jobs one of the larger headcount cuts announced by a major software company this year. Reuters reported that the layoffs will affect employees worldwide. (cnbc.com) The memo seen by Reuters said the last day for impacted U.S. employees will be July 31. Reuters also reported that affected U.S. workers will receive 16 weeks of base pay plus two additional weeks for every year at Intuit. The company is also winding down its Reno, Nevada, and Woodland Hills, California, offices as part of the restructuring, according to the memo. (cybernews.com) ### What did Intuit say about AI? CEO Sasan Goodarzi said the company is “architecting an organization that operates with greater velocity to deliver durable long-term growth,” according to Intuit’s statement and CNBC’s report. In a separate memo to employees cited by CNBC, he said Intuit believes it can “serve more customers and deliver breakthrough products” by simplifying its structure and becoming “a faster, leaner, and more focused company.” (cybernews.com) Reuters reported that Goodarzi told employees the cuts would help Intuit sharpen its focus on the company’s “big bets,” including efforts to embed AI across its services. Reuters also said Intuit has signed multi-year deals with Anthropic and OpenAI to integrate their models into Intuit software and bring Intuit’s tax, finance, accounting and marketing capabilities into Claude and ChatGPT. Intuit’s investor site separately shows AI-focused product announcements this year, including QuickBooks Workforce on May 6 and an Anthropic partnership announced on Feb. 24. (cnbc.com) ### Was this only about layoffs, or did the business also change? Intuit paired the job-cut announcement with an earnings release on May 20 and a higher full-year forecast. That combination suggests management wanted investors to view the restructuring as part of a broader operating reset rather than a standalone cost-cutting move, though that interpretation is based on the timing of the disclosures. (cybernews.com) The market response showed that investors focused instead on slowing growth, the scale of the workforce reduction and the cost of the restructuring. Intuit’s stock had already fallen more than 40% this year before the earnings release, CNBC reported. ### What happens next? July 31 is the stated last day for affected U.S. employees, according to the Reuters-reported memo. (investors.intuit.com) Intuit said most of the $300 million to $340 million in restructuring charges will be recorded in the current quarter, and the company’s investor relations page lists its next scheduled milestone as an Investor Day on Sept. 17, 2026. (cybernews.com) (cnbc.com)