Intuit announced plans to cut approximately 17% of its full-time workforce, impacting over 3,000 employees based on its last reported headcount of 18,200, as the company seeks to 'move with greater velocity' and address slowing growth [1]. The restructuring will result in charges of $300 million to $340 million, mostly in the current quarter [1]. This move comes as Intuit's quarterly revenue of $8.56 billion narrowly missed analyst expectations of $8.61 billion, despite adjusted earnings per share of $12.80 beating the $12.57 consensus for the fiscal third quarter ending April 30 [1]. Revenue grew 10% year-over-year, marking the slowest expansion since 2024, while net income rose about 9% to $3.06 billion [1].
Intuit shares have fallen more than 40% year-to-date, significantly underperforming the S&P 500, which has gained roughly 8% in the same period [1]. The stock dropped 11% in extended trading following the announcement [1]. The company cited the need to scale its growth engines and simplify its structure to deliver long-term growth, with CEO Sasan Goodarzi emphasizing the goal of becoming a 'faster, leaner, and more focused company' [1].
Despite the layoffs and revenue miss, Intuit raised its fiscal 2026 outlook, now expecting adjusted earnings per share of $23.80 to $23.85 and revenue between $21.34 billion and $21.37 billion, both above LSEG consensus estimates of $23.21 per share and $21.23 billion in revenue [1]. The announcement comes amid a broader trend of tech layoffs, with companies like ZoomInfo, Cloudflare, Cisco, and Meta also announcing significant workforce reductions in recent weeks [1].
CONCLUSION
Intuit's decision to cut 17% of its workforce and restructure reflects the company's response to slowing growth and a sharp stock decline. While the layoffs and revenue miss weighed on investor sentiment, the company raised its fiscal 2026 guidance, signaling confidence in its long-term strategy. The market reaction has been negative, but management aims to position Intuit for future growth through increased efficiency and focus.