Intuit, a financial and tax software company (including Turbotax, Quickbooks, Creditkarma, and Mailchimp acquired in 2021), has announced the layoff of 1,800 employees, which accounts for 10% of its workforce. They also plan to hire an additional 1,800 employees in various departments.
Sasan Goodarzi, the CEO of Intuit, stated that the layoffs are not cost-cutting measures but rather a restructuring to align with the future direction of the business. The new hires will focus on engineering, product development, sales, marketing, and customer management. Goodarzi mentioned that by 2025, the company aims to have more employees than the current numbers.
Furthermore, recent performance evaluations have raised the standards, resulting in the dismissal of 1,050 employees who did not meet the criteria. Additionally, 10% of upper management (director level and above) were let go, unnecessary positions were eliminated, and some offices were closed or relocated, totaling the 1,800 job cuts.
Employees affected by the layoffs will receive a minimum 16-month severance package and additional compensation based on years of service (for U.S. employees). They will also be entitled to stock options based on vesting conditions starting in July.
TLDR: Intuit announces the layoff of 1,800 employees, representing 10% of its workforce, with plans to hire the same number of employees in strategic areas. CEO Sasan Goodarzi emphasizes that the layoffs are part of a strategic restructuring to align with future business goals. Performance evaluations have led to increased standards, resulting in job cuts across different levels and functions. Affected employees will receive severance packages and stock options based on vesting conditions.
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