Artificial Intelligence: The tsunami of layoffs caused by artificial intelligence (AI) shows no signs of abating. Many large companies have already laid off employees, including Meta and Intuit.

Intuit lays off 3,000 workers to make way for AI.

Intuit Layoff: Global financial technology firm Intuit has made a big announcement of laying off 17 percent of its global workforce, i.e. about 3000 people.

According to an internal company memo, CEO Sasan Goodarzi told employees on Wednesday that the restructuring aims to reduce complexity and simplify the company's organizational structure to deliver better products and accelerate the pace of innovation.

Is the company replacing humans with AI?

The company aims to reduce organizational complexity and improve operations. Intuit is shifting its resources toward AI-based technology.

The company also recently signed agreements with companies like OpenAI and Anthropic to integrate AI into its financial and tax software, such as TurboTax and QuickBooks. However, the company's CEO has made it clear that the layoffs are not intended to replace workers with AI, but rather are part of a strategic effort to increase the company's efficiency.

What will the affected employees get?

According to a Reuters report, employees affected by these layoffs in the US will receive 16 weeks of basic salary, plus an additional two weeks' salary for each year of service with the company.  

Impact on India

Intuit's global layoffs are expected to impact India as well, especially Bengaluru, one of the company's global hubs. Large teams in product development, engineering, and data science work here, so some roles may be eliminated in these offices as well. Intuit is also closing its offices in Reno, Nevada, and Woodland Hills, California. The company announced these layoffs on the same day Meta announced the layoffs of 8,000 people.