hires who can create a better focus on products that leverage the power of artificial intelligence.
Chief Executive Officer Sasan Goodarzi wrote in a letter addressed to its employees that almost 10% of the global workforce will have to suffer in this process. The company is “The global financial technology platform that gives you the power to prosper”, as they have mentioned on their website.
Intuit is an American multinational tech company that focuses on business software and financial software. The headquarters of the company are situated in California, being founded by Scott Cook and Tom Proulx in 1983 in Palo Alto.
The idea of the company started from the need for technology instead of paper and pen accounting. At his former job, Scott Cook realized that computers would become the future of our work environment, meeting Tom Prolux with whom he shared the same mentality. The two of them founded Intuit and began working together on the first version of Quicken.
In 1991, Microsoft Money was launched, creating the competitor for Quicken. However, in order to win the loyalty of their retailers, Intuit offered a $15 rebate coupon for in-store purchases. Yet, this was only the beginning of the journey for Intuit.
Fast forward, Intuit released a letter where it was mentioned that they “are not meeting expectations,”, which led to the reduction of the personnel. Goodarzi also said, “The changes we are making today enable us to allocate additional investments to our most critical areas to support our customers and drive growth”.
Even more so, in the letter he wrote, the power of AI was mentioned repetitively. It also highlights the power of a more productive environment with the integration of artificial intelligence. Kirk Materne, Evercore ISI analyst, reported about this issue “We believe making these changes from a position of strength is the right move and we view the incremental hiring plans post reduction in workforce as a sign that Intuit remains bullish on its growth prospects, especially as it relates to small businesses and Credit Karma,".
It’s also worth mentioning that those layoffs will cost Intuit $250 million, looking forward to a bigger headcount in the next fiscal year (2025).
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