Software giant Intuit announced it would cut nearly 2,000 employees and close down its campus in Eagle near Boise, as well as a location in Edmonton, Canada.
The Wall Street Journal reports that the cuts – a total of 1,800 people – represent about 10 percent of the company workforce. After it cuts the people and closes the locations, it would then pivot toward artificial intelligence and launch a new hiring spree – hiring a new set of 1,800 workers.
Intuit’s stock dropped 3.6% on the news.
The company said the changes were “in service to growing technology teams and capabilities in strategic locations,” indicating the Eagle location is not a strategic location.
Intuit bought the former TSheets business in 2018, and pivoted the Eagle site to service a number of its software products, including the broader QuickBooks library of programs and others. Intuit announced it would open a second office building to accommodate 900 workers before the COVID-19 pandemic. The second office building was built, and Intuit instead moved all employees to the new building, vacating the former TSheets building.
CNBC reported about 80 roles would be relocated to other sites, including Atlanta, Bengaluru, India and Tel Aviv, Isreal. The new hiring would start in fiscal year 2025, the WSJ reported. Intuit will pay between $250 million and $260 million in severance and other costs.
Intuit last cut an unknown number of jobs at the Eagle campus in 2020. The company told BoiseDev the job cuts will impact 157 employees at what it calls its Boise site. The campus will close this Friday, but employees will remain on the payroll until September 9th – 60 days from today. Intuit said this will alow employees who have stock options to vest for their annual bonus.
US workers will get 16 weeks of pay, plus two additional weeks for every year they were employed, as well as six months of health insurance coverage and access to career development and job placement services.
Intuit is the company behind CreditKarma, Mailchimp and TurboTax, as well as QuickBooks.
