Small business financial software provider Intuit is laying off 715 employees, but also plans to hire 700 people to focus on next-generation technologies such as data science, data engineering, mobile, and native cloud services.
Among the additional focus areas: Building a new partner and VAR ecosystem to engage mid-market customers, Intuit CEO Sasan Goodarzi disclosed in a June 22 email to employees.
The staffing changes come only a few months after Intuit disclosed plans to acquire personal financial portal Credit Karma for about $7.1 billion in cash and stock.
Technology Industry Layoffs: Complete Job Cut List
Intuit Explains Staff 'Rebalancing'
Intuit's talent strategy mirrors many technology firms that are "rebalancing" their payrolls -- shedding legacy teams while ramping up in newer skill set areas. IBM, for one, is notorious for making such rebalancing moves -- though that technology giant never fully discloses layoff figures.
In stark contrast, Intuit is striving to work with an open playbook -- though that certainly won't make life easier for those who lose their jobs.
In a bid to more fully explain the Intuit staffing changes and business direction, Goodarzi noted:
"We are now facing a fundamental shift as the pace of change has dramatically increased. More customers are looking for virtual solutions, small businesses are accelerating their shift to omni-channel commerce, and money benefits and offerings matter more than ever."
As a result, Intuit needs to move even faster while focusing on big bets, prioritizing the most important work, and acting with compassion to help all affected employees, he added.
Intuit Prepares Mid-Market VAR Ecosystem Push
Changes across Intuit's technology, customer success and sales organizations will also involve working more closely with VARs in the mid-market, Goodarzi wrote. Read between the lines and it sounds like a new Intuit partner program is under development.
For its third quarter of fiscal 2020, ended April 30, Intuit reported:
- Total revenue of $3.0 billion, down 8 percent.
- Small Business and Self-Employed Group revenue up 11 percent to $1.0 billion.
- Small Business Online Ecosystem revenue grew 28 percent.
- Consumer Group revenue declined 15 percent to $1.8 billion.
Intuit blamed the weak Q2 results on the COVID-19 pandemic, which triggered the IRS extending the tax filing deadline to July 15. Additionally, the shelter-in-place directives negatively impacted small businesses that are facing loss of income and cash flow to pay employees and weather the storm, Intuit said at the time.
