May 20 (Reuters) – TurboTax parent Intuit missed quarterly revenue estimates on Wednesday and said it would cut 17% of its full-time workforce, sending its shares down 10% in extended trading amid lingering fears over AI disruption.
The reduction of nearly 3,000 roles globally, reported exclusively by Reuters earlier in the day, is expected to help simplify organizational structure and focus on key areas, such as AI efforts.
“We believe we can serve more customers and deliver breakthrough products that fuel our customers’ success by reducing complexity and simplifying our structure to become a faster, leaner, and more focused company,” CEO Sasan Goodarzi said in a blog post on Intuit’s website.
The tax and accounting software provider said it expects $300 million to $340 million in restructuring charges tied to the job cuts, to be recognized in the fourth quarter. It had about 18,200 employees across seven countries as of July 31, 2025, according to its annual report.
New generative AI technologies potentially disrupting Intuit’s core tax business has been a key investor concern, weighing on its shares, which have fallen 42% so far this year.
The tax guidance capabilities that Intuit’s TurboTax has long monetized at a premium can now be replicated by general-purpose large language models that require no proprietary financial data, undermining a key pillar of the company’s competitive advantage.
Partnerships with AI companies, including a multi-year deal with Anthropic announced in February, are now central to the company’s strategy of embedding AI tools across its platforms as well as adding its personalized tax, finance, accounting and marketing capabilities to AI applications.
Intuit posted revenue of $8.56 billion for the February-April quarter, falling short of analysts’ average estimate of $8.61 billion, according to data compiled by LSEG.
The company now expects annual revenue between $21.34 billion and $21.37 billion, up from its previous projection of $21 billion to $21.19 billion.
It raised its annual adjusted profit forecast to a range of $23.80 to $23.85 per share, up from $22.98 to $23.18 per share previously.
(Reporting by Anhata Rooprai in Bengaluru and Juby Babu in Mexico City; Editing by Diti Pujara)
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