Intuit (INTU) shares fell nearly 4% on Wednesday due to the company’s plans to lay off about 17% of its global workforce, or 3,000 employees across seven countries, Reuters reported. In a memo to staff, CEO Sasan Goodarzi said the cuts are meant to streamline operations and shift more resources toward its growing AI work. The news comes on the same day Intuit is set to report its fiscal third‑quarter results.
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Explore AMZO for 2X short leverage on AMZNFor U.S. employees affected by the cuts, Intuit said they will stay on payroll until July 31 and receive 16 weeks of base pay, plus two extra weeks for every year of service. The company is also closing its Reno and Woodland Hills offices as part of a plan to bring teams together in a few key hubs.
Importantly, Intuit joins other tech firms, including Block (XYZ), Amazon (AMZN), and Pinterest (PINS), that have cut jobs this year as companies push for efficiency and invest more heavily in AI.
Intuit Sharpens Its AI Push
The layoffs will help Intuit focus on its AI efforts, including adding more AI tools to its products. The company has signed multi-year deals with OpenAI and Anthropic to use ChatGPT and Claude in its products.
Intuit also plans to blend its own tax, finance, accounting, and marketing know‑how into those AI models to build smarter features across TurboTax, QuickBooks, Credit Karma, and Mailchimp.
Options Traders Brace for a 9.34% Price Swing in INTU Stock
Options traders are bracing for a sharp move in Intuit stock. Following the earnings release, the options market is pricing in about 9.34% swing. The implied move reflects how uncertain traders are about the company’s near-term outlook. With job cuts, AI investments, and shifting demand all in focus, the market is preparing for a wide range of possible outcomes once results are released.
Is INTU a Good Stock to Buy?
Turning to Wall Street, INTU stock has a Strong Buy consensus rating based on 19 Buys and four Holds assigned in the last three months. At $580.23, the average Intuit stock price target implies a 50.05% upside potential.
