12:42 PM EDT, 07/10/2024 (MT Newswires) -- Intuit (INTU) announced plans to layoff 1,800 employees and close two locations as part of a restructuring plan that will enable the financial technology company to increase its investments in artificial intelligence.

The move, which will see Intuit shed 10% of its workforce, is expected to cost $250 million to $260 million, according to a Wednesday filing with the Securities and Exchange Commission. The charges, which include severance, share-based compensation and site closure costs, will be primarily incurred in the company's ongoing quarter ending July 31.

Intuit will close its Boise, Idaho and Edmonton, Canada sites while growing technology teams and capabilities in "strategic locations," according to the filing. As part of the job cuts, the company will reduce its executive team by 10%, while expanding certain roles and responsibilities.

The parent of tax-preparation software TurboTax expects substantially all of the actions announced on Wednesday to be completed by the end of its fiscal first quarter, which ends on Oct. 31. Shares of Intuit fell 3.9% in midday trade.

"We must accelerate our innovation and investments in the areas that are most important to our future success," Chief Executive Sasan Goodarzi said in an email to employees on Wednesday.

Intuit plans to hire a nearly equivalent number of employees in fiscal 2025 to support its key growth areas, the regulatory filing showed. Goodarzi said the company plans to accelerate investments in data and AI.

Late in May, Intuit reported stronger-than-expected fiscal third-quarter results with revenue climbing 12%, while raising its full-year outlook. Increased investments will be made in connecting customers to experts through AI-driven channels, advancing money solutions and accelerating international growth, Goodarzi told employees.

"With the introduction of GenAI, we are now delivering even more compelling customer experiences, increasing monetization potential, and driving efficiencies in how the work gets done within Intuit," he said. "But it's just the beginning of the AI revolution."

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