The CEO of tax prep specialist Inuit (NASDAQ:INTU) told employees in a company blog post that 7% of its workforce was being fired because it faces "a fundamental shift as the pace of change has dramatically increased."
Stating that Intuit had begun its transition into an artificial intelligence platform 16 months ago, CEO Sasan Goodarzi said it was necessary to terminate 715 employees as it looks to revamp its customer experience, technology, and sales strategies.
The future of tax prep
"We took a careful review of the company, looking for redundancies in tools, systems and for roles that were not aligned to where we are investing for the future", Goodarzi said in the blog, and Intuit now knows where it must invest.
It has identified new skills sets it needs to build an AI-driven expert platform and will be creating over 700 new positions to hire for those skills. Intuit has previously said AI, machine learning, and data science are "foundational" to its success in fulfilling its mission.
The tax prep specialist reported revenue had grown 14% in the first half of its fiscal year, but the coronavirus pandemic caused the IRS to extend the tax filing deadline until July 15. Although it expects its small business and self-employed group revenue to grow 10% in the third quarter, consumer revenue is expected to drop 15% from last year.
Intuit says it is experiencing a significant revenue shift into its fiscal fourth quarter, so total company revenue is expected to decline 8% in the third.