WOODLAND HILLS, CALIFORNIA — Intuit will cut 17% of its staff, or about 3,000 employees, and redirect resources toward integrating artificial intelligence into its products, according to an internal memo. The company plans to wind down its Woodland Hills office in the Los Angeles area and shutter its office in Reno, Nevada, with the last day of employment for affected U.S. workers set for July 31.

CEO Sasan Goodarzi said in the memo that the reductions are intended to reduce complexity by simplifying the company's corporate structure and to sharpen its focus on AI. Affected U.S. employees will receive 16 weeks of base pay plus an additional two weeks of pay for each year of service.

Intuit, which makes accounting, tax, and personal finance software including TurboTax, QuickBooks, and Credit Karma, had 18,200 employees worldwide as of July 31, 2025, according to its annual report. The company has signed deals with AI firms Anthropic and OpenAI to integrate their technology into products including TurboTax and QuickBooks.

Intuit's stock fell nearly 5% in morning trading on the day the layoffs were announced. Its share price has underperformed the S&P 500 index over the past 12 months. Goodarzi's compensation during fiscal 2025 was $36.8 million, including cash incentives and stock awards.

In its fiscal second quarter ended in January, Intuit reported revenue of $4.65 billion, a 17% increase from the prior year, and a net profit of $693 million, a 48% increase from a year earlier. Company guidance projects revenue to increase by about 10% in the fiscal third quarter.

The cuts come as the technology sector has shed more than 100,000 jobs this year, according to Statista, and is on track to exceed the number of job cuts recorded in both 2024 and 2025. Amazon, Block, Cisco, Cloudflare, Meta, Microsoft, and Oracle have each laid off thousands of employees while citing a need to refocus expenditures around AI projects. Those companies have recently reported strong revenues and profits tied to demand for AI products, services, or infrastructure, and nearly all have seen their share prices rise as investors wager on AI-driven growth for software firms.