The tech industry has been a harsh place for workers this year, as major companies continue to cut jobs, while promising investors a more AI-driven future and a leaner, simpler company structure.
For employees, this shift has created a continuous sense of instability. And while layoffs may have become common across the sector, they do not make living with the uncertainty any easier.
Social media forums like Reddit and Blind are full of employees sharing their shaken mental health after being laid off, or while working at a place that does sudden headcount reductions.
A Reddit user on a dedicated subreddit said that working for a company that conducts random layoffs “has started to affect me a bit mentally,” noting that the stress of losing a job and a toxic work environment are making them want to quit.
The tech sector has been particularly brutal, with more than 111,173 tech employees laid off across 147 tech companies so far, according to Layoffs.fyi, a tech layoff tracker.
Now, another major name is joining the list.
Intuit, the company behind TurboTax, Credit Karma, QuickBooks, and Mailchimp, is laying off about 17% of its global workforce, according to an internal memo seen by Reuters.
Intuit cuts jobs as AI push expands
Intuit’s job cuts are part of a broader effort to streamline operations and sharpen the company’s focus on key growth areas, including artificial intelligence.
According to the report, Intuit will cut roughly 3,000 jobs worldwide to reduce complexity and simplify its operations.
The layoffs represent a significant reduction in Intuit’s workforce, which had over 18,000 employees in seven countries as of 2025.
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The restructuring will also affect Intuit’s physical footprint. The company is closing its offices in Reno, Nevada, and Woodland Hills, California, as it consolidates teams in key hubs, Reuters reported.
For affected U.S.-based employees, the last working day will be July 31, and they will receive 16 weeks of base pay, plus two additional weeks for every year they worked at Intuit, as part of the severance package, according to the memo.
Intuit leans hard into AI expansion
The job cuts come as the company is set to announce its Q3 2026 earnings after the market close today, May 20, and saw its shares fall by more than 3.8% intraday, down 42% year to date.
Whether the drop was driven by the layoff news or by earnings anticipation is difficult to say.
The consolidation message comes as the company promotes a new phase of AI-driven growth. Earlier in May, the company launched enhancements to Intuit Enterprise Suite, calling it an AI-native ERP platform for mid-market businesses.
Intuit said the platform brings financial and operational data into one place, delivers AI-powered real-time insights, automates complex financial management, and integrates human capital management.
The platforms will help businesses streamline operations and drive revenue as they scale, Intuit said in the announcement. With this in the pipeline, the layoffs’ timing is especially important, as the company is laying off a sizeable portion of its own workforce while telling clients AI can help grow their businesses.
Intuit’s earnings expectations
In its Q2 2026 earnings, Intuit reported 17% revenue growth to $4.7 billion. GAAP operating income also jumped 44%, while GAAP diluted earnings per share rose 49% to $2.48. And for its full-year 2026 guidance, the company expects revenue growth of about 12% to 13%.
And despite the stock’s decline today ahead of the latest earnings announcement, some Wall Street analysts remain optimistic about the stock’s price.
- TD Cowen lowered its price target to $576 from $633, but kept a buy rating. The firm said it has a positive view of the company’s Q3 setup, driven by the expectation of a clean beat and a raise, especially after the stock’s recent underperformance lowered the bar for results.
- Jefferies also remains bullish, maintaining a buy rating and a $650 price target. The firm pointed to signs that more TurboTax users are moving toward the company’s higher-priced full-service product, which could help Intuit beat its own 8% TurboTax revenue growth outlook.
- Morgan Stanley also named Intuit a Top Pick, saying the stock looks attractively valued after its recent sell-off. The firms said Intuit has multiple product cycles that could accelerate revenue growth, while web traffic trends suggest improved business momentum, according to TheFly.
Tech layoffs continue as AI reshapes work
Intuit’s layoffs add to a broader wave of job cuts across major companies this year, with most driven by AI-related restructuring.
Cisco recently confirmed it was cutting around 4,000 jobs, in what it said was not a cost-cutting exercise, but a reallocation of costs to fund its other growth areas, such as AI, silicon, optics, and security investments.
Verizon also revealed another round of layoffs as executives discussed the company’s AI future, while cutting 1% of its workforce after a 13,000-person layoff late last year.
Cloudflare, in a similar move to Cisco, announced a shift to the Agentic AI era and said it planned a 20% workforce reduction. Snap also confirmed 1,000 job cuts as it shifted resources to higher-growth areas, including artificial intelligence.
The pattern is there, and companies are using a similar language — around cost reallocation, simplifying layers, and future growth — to explain the restructuring. And together, these moves are resulting in fewer jobs.
Related: Cisco CEO reveals real reason behind 4,000 job cuts
