(Reuters) -TurboTax-parent Intuit said on Wednesday it will let go of about 1,800 employees, or 10% of its workforce, as it looks to reinvest capital in other critical areas.
The company, which has invested heavily in providing generative AI powered accounting and tax preparation tools for small and medium businesses in the past few years, expects to close two of its sites in Edmonton, Canada and Boise, Idaho.
Intuit will rehire 1,800 new people primarily in engineering, product and customer-facing roles, CEO Sasan Goodarzi said in a note to employees.
The note added that 300 roles were being eliminated to streamline work.
The layoffs will cost Intuit between $250 million and $260 million, with substantial amounts of the charge expected to be incurred in the fourth quarter, the company said in a regulatory filing.
(Reporting by Akash Sriram in Bengaluru; Editing by Shounak Dasgupta)
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