May 20 (Reuters) - TurboTax parent Intuit missed quarterly revenue estimates on Wednesday and said it would cut 17% of its full-time workforce, sending its shares down 13% in extended trading amid lingering fears over AI disruption.
The reduction of nearly 3,000 roles globally, reported exclusively by Reuters earlier in the day, is expected to help simplify organizational structure and focus on key areas, including AI efforts.
The tax and accounting software provider expects $300 million to $340 million in restructuring charges tied to the job cuts, to be recognized in the fourth quarter. It had about 18,200 employees across seven countries as of July last year, according to its annual report.
Investor worries over generative AI's potential to disrupt Intuit's tax business have weighed heavily on the stock, which has fallen 42% so far this year.
General-purpose large language models can now replicate TurboTax's premium tax guidance capabilities without proprietary financial data, undermining a key pillar of Intuit's competitive advantage.
On a post-earnings call, CEO Sasan Goodarzi said that total Internal Revenue Service tax filings are projected to drop nearly 30 basis points this season, roughly 2 million short of broader economic forecasts, marking the steepest industry-wide contraction since the post-COVID era and pressuring results across all customer demographics.
Goodarzi also said Intuit plans to "take pricing actions at the higher end" of its portfolio, while announcing an expansion of its platform set for August.
AI partnerships, including a multi-year deal with Anthropic, are now central to Intuit's strategy of embedding AI tools across its platforms and expanding its tax, finance, and accounting capabilities.
The company posted revenue of $8.56 billion for the February-April quarter, falling short of analysts' average estimate of $8.61 billion, according to data compiled by LSEG.
Quarterly adjusted profit came in at $12.80 per share, compared with estimates of $12.57.
It now expects annual revenue between $21.34 billion and $21.37 billion, up from its previous projection of $21 billion to $21.19 billion.
(Reporting by Anhata Rooprai in Bengaluru and Juby Babu in Mexico City; Editing by Diti Pujara)
