Intuit Inc (NASDAQ:INTU, ETR:ITU) announced a significant reshuffle in its workforce, demonstrating a strategic pivot towards growth and innovation.
The company revealed plans to lay off approximately 1,800 employees, equivalent to about 10% of its current headcount, only to rehire a similar number in more strategic roles.
Its move mirrors a similar strategy from June 2020, where Intuit cut 715 jobs but subsequently hired over 700 in key growth areas.
Before the market opened, Intuit disclosed that around 1,050 of the layoffs are targeting low performers. But the company said that new hires will focus on "engineering, product, and customer-facing roles such as sales, customer success, and marketing," indicating a shift towards areas that are likely to drive future growth.
“Intuit is doubling down on key strategic goals, including expert-enhanced solutions, AI, mid-market, and international expansion along with Mailchimp,” analysts from Jefferies commented in a note Wednesday.
Intuit's headcount has been increasing consistently since FY15, and the company anticipates this trend will continue in the coming year.
Despite macroeconomic challenges, Jefferies believes Intuit remains well-positioned with its resilient tax and small business segments. Analysts reiterated a 'Buy' rating for Intuit, with a price target of $770, representing an 18% upside from the current price of $650.42.