Fortune’s Post

#onStrategy We are going to see more and more of this headline. There many key lessons from what their CEO said between the lines: 1/ Intuit is laying off 1,800 employees, about 10% of its workforce, as part of a strategic corporate reshuffling to advance its artificial intelligence ambitions. This decision, announced by CEO Sasan Goodarzi, is not a cost-cutting measure but a reallocation of resources to the company's most critical areas, including AI development. The company will rehire approximately 1,800 new engineering, product, and customer-facing employees. Goodarzi emphasized that Intuit is in a strong position and needs to accelerate innovation and investment to maintain its leadership and fulfill its mission of powering customer prosperity. (=AI is better at customer service) 2/ The layoffs will also see a significant rise in performance expectations, resulting in 1,050 employees leaving due to not meeting these heightened standards. Intuit has trimmed its executive headcount by 10%, consolidated technology roles, and eliminated over 300 positions across the company. Despite these cuts, the company plans to grow its overall headcount in the 2025 fiscal year and beyond, focusing on data and AI investments and engineering hires. Intuit aims to develop its generative AI-powered financial assistant, Intuit Assist, and other customer solutions. Source: https://lnkd.in/dFty--JX

🚀 Intuit's Major Shift Towards AI: 1,800 Layoffs Announced 🚀 Intuit, the company behind TurboTax, is making a bold move by laying off 1,800 employees, which is 10% of its workforce. This decision is part of a strategic pivot towards integrating AI and generative AI capabilities. Here’s what you need to know: Embracing AI: Intuit is enhancing its products with AI, including QuickBooks and Credit Karma. Rehiring Strategy: The company plans to rehire 1,800 employees in critical roles like engineering and product development. Employee Support: Affected employees will receive comprehensive severance packages. Global Expansion: Intuit is expanding its presence in Canada, the UK, and Australia. This transformation is set to revolutionize Intuit's offerings and strengthen its market position. 🔗 Read our full blog for all the details: https://lnkd.in/eFD2iH-c #Intuit #AIIntegration #TechNews #WorkforceRealignment #Innovation #FutureOfWork #TechIndustry #TurboTax

Another major announcement about layoffs. This time 10%. Intuit. It was a business decision and while the reason “makes sense” seems to be a lesson in how a leader should reframe the way she or he announces strategic decisions when laying off so many people who were “doing their job”. If you’re a coach - this is sadly a great time to get to work. So many people are out of work, emotions are high, job availability is low. If you’re out of work or trying to elevate your skills and attention at work - engage with a coach. A qualified business coach can help you find solutions to challenges and opportunities. I am happy to offer a complementary discovery call to anyone who has been laid off or fears their job is as risk. Just message me. #careercoaching #schoolofthoughts

It's been six months since I was laid off from Intuit because of a team reorg. And today I learned that 1,800 other Intuit employees face the same fate. I'm here for any former Intuit teammates and am open to sharing what I've learned about the job market during this past half year. It's been a tough market, so make sure to rely on your network. And remember that this layoff doesn't define you as a person. You are more than your work. https://lnkd.in/gQAJrZUw #intuitlayoffs #networking

I knew it was just a matter of time, but this news about Intuit came more quickly than I expected... #AI #GenAI #AIworkforce #Intuit #accounting "This morning, Intuit CEO, Sasan Goodzari, announced the company is planning to lay off 1,800 employees or about 10% of the workforce. Goodzari says the layoffs will help free up investment capacity for AI / GenAI - including investments into Intuit Assist and transforming traditional products to AI-native products. Additional investments will be focused on money movement, mid-market / SMB expansion, and int'l growth. Worth noting Intuit plans to hire additional employees in Fiscal 2025 (begins August 1st) with specialized skills in AI, product, and sales/marketing. Of the 1,800 employees being let go, over 50% of individuals are not meeting performance expectations. Intuit is also eliminating 10% of SVP, EVP, and director roles by expanding the responsibilities of remaining executives." https://lnkd.in/gWPGUbrX

Intuit is laying off 1,800 employees. Their CEO says 1,050 were "underperforming". He added that Intuit doesn't do layoffs as a "cost-cutting" measure but to reinvest in AI instead. If nearly 10% of your workforce isn't "meeting expectations of employee performance", that's a leadership issue, not an employee issue. Leaders, it's your responsibility to: -Set clear expectations -Track performance weekly, monthly, quarterly -Give regular, constructive feedback -And if the goal post changes, the goal changes. Set your team up for success. Don't measure them against goals you never clearly communicated.

Read this.

With lay offs happening almost daily I would say this:  It’s not about lack of money. It’s about resource re-allocation. This could be clearly seen in Intuit’s CEO Sasan Goodarzi memo: “… Today we will be communicating to approximately 1,800 employees, which is 10% of our workforce, that they will be leaving Intuit.  … We do not do layoffs to cut costs, and that remains true in this case. The changes we are making today enable us to allocate additional investments to our most critical areas to support our customers and drive growth as detailed below. This includes reinvesting in the necessary skills and capabilities to support these areas, and, as such, we will hire approximately 1,800 new people primarily in engineering, product, and customer facing roles such as sales, customer success, and marketing.  … “ Full memo is here: https://lnkd.in/gNfcAWTH

Intuit's CEO, Sasan Goodarzi, announced the layoff of 1,800 employees to reallocate resources towards AI and other critical growth areas. This decision aligns with companies beginning to adapt to the rapid advancements in AI. While this isn't the first instance of such restructuring, and it certainly won't be the last, it underscores the need for businesses to evolve to remain competitive. Goodarzi highlighted AI's transformative impact on global innovation and the necessity for companies to embrace these changes. Despite the forward-looking strategy, the layoffs have drawn criticism for their perceived insensitivity, particularly towards employees who have contributed significantly to the company's success. This decision highlights the challenging balance between driving technological advancement and the impact of AI change on the future of work. #ai #leadership #4thindustrialrevolution

I can’t stop thinking about the 1000+ Intuit employees laid off last week.  In an open letter https://lnkd.in/e_27Xh4W under the heading ‘Taking Care of our People’ the CEO say’s this: “We’ve significantly raised the bar on our expectations of employee performance, resulting in approximately 1,050 employees leaving the company who are not meeting expectations and who we believe will be more successful outside of Intuit.” Even if that is the case I cannot understand how publicly labelling people you have just laid off as ‘under-performers’ benefits anyone.  Certainly not the colleagues who will find it hard enough to find another job in an already tough market.  Or the colleagues left behind wondering if that’s how they’ll be treated if they don’t meet expectations in 12 months’ time. Many years ago, I was asked to lead the communication for a redundancy programme that would affect some of my closest colleagues. Bound by a strict NDA, it was quite stressful listening to coworkers discussing their future plans—weddings, house moves, holidays—while knowing what was about to be announced. I managed that communication with great care, planning every detail of the announcement as if I were one of the impacted colleagues.   I also wanted colleagues who were staying to approve of the way their colleagues were treated when leaving the business.   It made all the difference to the colleague experience.  I often share this story in presentations about change. It’s where I first experienced managing change in a people-centric way and it’s been the template for how I’ve managed redundancy programmes ever since.   Laying people off is never easy, but the very least we can do is remind ourselves of the values we espouse and allow people to exit with compassion, dignity and respect. I’d love to hear what you think.