Midmarket, Content, Security Staff Acquisition & Development

Intuit Layoffs 2020: Staff Cuts Amid New Hires, Mid-Market VAR Partner Push

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 CEO Sasan Goodarzi
Intuit CEO Sasan Goodarzi

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.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.