Intuit Layoff: Global financial technology firm Intuit has made a big announcement of laying off 17 percent of its global workforce i.e. about 3000 people.

According to the company’s internal memo, CEO Sasan Goodarzi told employees on Wednesday that the purpose of this restructuring is to reduce complexity and simplify the company’s organizational structure so that better products can be delivered and the pace of innovation can be accelerated.

Is the company replacing humans with AI?

The objective of the company is to reduce the complexities of organization and improve operations. In this sequence, Intuit is shifting its resources towards AI-based technology.

The company also recently signed deals with companies like OpenAI and Anthropic to add AI to its financial and tax software like TurboTax and QuickBooks. However, the CEO of the company has made it clear that the layoff has not been done to replace workers with AI, but it is a strategic part of the company to increase its efficiency.

What will the affected employees get?

According to Reuters report, the employees affected by this layoff in America will be given 16 weeks’ basic salary. Apart from this, additional 2 weeks salary for every year of service spent in the company will also be included in the package.

impact on india

This global layoff of Intuit is sure to impact India also because India, especially Bengaluru, is one of the global hubs of the company. Large teams of product development, engineering and data science work here, so some roles can be eliminated in these offices also. Intuit is also going to close its offices in Reno, Nevada and Woodland Hills, California. The company announced this layoff on the same day as Meta announced the firing of 8000 people from its company.

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Meta Layoffs: Meta sent a mail at 4 in the morning, 8000 people were laid off in one fell swoop, where will the layoff money be spent?