Another California tech company lays off thousands, citing AI
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The layoffs bludgeoning the tech industry continued this week as artificial intelligence reshapes the industry.Mountain View-based Intuit, the maker of TurboTax, on Wednesday said it was laying off 17% of its workforce, or about 3,000 employees, as part of its restructuring to cut costs and invest in artificial intelligence.The company said it had slowed down due to “too many organizational layers” and the cuts will simplify the organization to become a “faster, leaner, more focused company.” Intuit said it will close its offices in Reno and Woodland Hills and incur an estimated $300 million to $340 million in restructuring charges.“We believe we can serve more customers and deliver breakthrough products that fuel our customers’ success by reducing complexity and simplifying our structure,” Sasan Goodarzi, chief executive of Intuit, said in a memo shared with employees.Intuit announced the layoffs on the same day it reported its third-quarter results, in which revenue jumped 10% from a year earlier, to $8.56 billion.Intuit adds to the count of more than 114,000 tech-sector employees laid off this year, according to Layoffs.fyi.Business Tech giants such as Meta and Coinbase continue to lay off employees, citing the way AI is reshaping how people work.
Tech workers are navigating a crossroads in their careers and a brutal job market.Meta laid off 8,000 workers on Wednesday, as the company cuts costs to ramp up investment in AI agents and infrastructure.The ever-expanding list of tech companies that have cut jobs includes Coinbase, Amazon, LinkedIn and more.
Some have cited productivity gains enabling fewer workers to accomplish more with AI, while others pointed out restructuring and cost-cutting to prepare for the AI disruption.In an earnings call, Intuit‘s chief financial officer, Sandeep Aujla, said the cuts were intended to make the organization leaner, and wer...