Intuit, the tax and financial software provider, announced a 17% reduction in its full-time workforce, marking a significant step in its strategic response to evolving market dynamics.
The move follows growing concerns among investors about the disruptive potential of generative artificial intelligence models in the software industry.
Shares of the company dropped 11% in response to the news.
The decision reflects broader industry trends, with several tech firms implementing similar cost-cutting measures over AI's long-term implications.
Intuit's restructuring is seen as an effort to streamline operations and better align with the shifting technological landscape.
The company has faced mounting pressure this year as market participants question its ability to maintain growth in the face of AI advancements.