Intuit cuts 17% of workforce as restructuring charges reach up to $340 million

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Intuit cuts 17% of workforce

Highlights

Intuit cuts 17% of its workforce, affecting over 3,000 employees, with restructuring charges estimated at $300 million to $340 million this quarter.
Fiscal Q3 results show adjusted earnings of $12.80 per share on $8.56 billion revenue, beating LSEG earnings forecasts but missing on revenue, with net income up 9% to $3.06 billion.
Intuit stock falls 11% in extended trading and is down more than 40% in 2024 as AI-driven industry pressures force cost restructuring despite a raised fiscal 2026 outlook.

Quarterly results and restructuring plan

As reported by CNBC, Intuit says it is cutting 17% of its full-time workforce, the latest large technology company to announce broad job reductions during the artificial intelligence boom. Based on the company’s last reported employee count of 18,200, the decision affects more than 3,000 people and is expected to generate $300 million to $340 million in charges, mostly in the current quarter.

Chief Executive Sasan Goodarzi says in a statement that Intuit is scaling its growth engines and redesigning its organization to operate with greater speed in support of durable long-term growth. The company, known for QuickBooks and TurboTax, also reports fiscal third-quarter adjusted earnings of $12.80 per share on $8.56 billion in revenue for the period ended April 30, compared with LSEG expectations of $12.57 per share and $8.61 billion in revenue.

Revenue rises 10% from a year earlier, the slowest pace of expansion for any period since 2024, while net income increases about 9% to $3.06 billion. Intuit also lifts its fiscal 2026 forecast and now expects adjusted earnings per share of $23.80 to $23.85 on revenue of $21.34 billion to $21.37 billion, ahead of the LSEG consensus for $23.21 per share and $21.23 billion in revenue.

Market pressure and software sector implications

Investors have been pressuring Intuit shares this year as concerns grow that AI tools could erode demand for some products and services offered by established software companies. The stock falls 11% in extended trading after the announcement and is down more than 40% this year, while the S&P 500 is up roughly 8%.

The announcement highlights how even profitable software groups are reshaping cost structures and operating models as AI changes competitive expectations across the sector. For Intuit, the combination of layoffs, restructuring charges and a higher annual forecast signals an effort to protect margins and reposition the business while Wall Street reassesses the durability of legacy software franchises.

In our earlier analysis of Intuit’s layoffs and AI-driven restructuring, we detailed the company’s plan to cut about 3,000 roles (roughly 17% of its workforce) as it shifts resources toward AI-focused initiatives. We also noted that INTU shares were trading under key technical levels, with bearish momentum pointing to continued near-term pressure and a likely consolidation range until the stock can reclaim major resistance.

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