The company that owns TurboTax announced Wednesday it will eliminate nearly 3,000 positions worldwide while raising its yearly financial projections, as it concentrates more heavily on artificial intelligence-driven financial software during a period of strong customer demand.
The workforce reduction, which represents 17% of global staff and was first reported by Reuters earlier Wednesday, aims to simplify the company’s organizational framework and focus on key priorities including AI initiatives, according to a company-wide message from CEO Sasan Goodarzi.
The tax and accounting software company said it anticipates restructuring costs between $300 million and $340 million related to the layoffs, which will be recorded in the fourth quarter. Company records show it employed approximately 18,200 people across seven countries as of July 31, 2025.
The company has increased its yearly revenue projection to between $21.34 billion and $21.37 billion, higher than its earlier estimate of $21 billion to $21.19 billion.
Annual adjusted profit predictions were also raised to a range of $23.80 to $23.85 per share, compared to the previous forecast of $22.98 to $23.18 per share.
The most recent tax filing season boosted the company’s February-April revenue by 10% to $8.56 billion compared to the same period last year, although this figure came in below the average analyst prediction of $8.61 billion according to LSEG data.
The company’s TurboTax Live service, which links taxpayers with professional advisors, has gained traction and may help address investor worries about generative AI technology potentially threatening the company’s profitable consumer tax business.
Collaborations with AI firms, including a long-term agreement with Anthropic revealed in February, form the cornerstone of the company’s plan to integrate AI capabilities throughout its platforms while incorporating its customized tax, financial, accounting and marketing services into AI applications.
