Intuit plans to eliminate about 7 percent of its workforce as it realigns its organizational structure to pursue a "connected services" strategy.
The move will lead to approximately 575 job cuts across various business units and locations, mainly in functions such as human resources and administration. The company plans to take a pre-tax charge of about $22 million, or $0.04 per share, in its fiscal fourth quarter, which ends July 31. That will produce a fourth-quarter GAAP loss per share of $0.18 to $0.20, and a non-GAAP loss per share of $0.07 to $0.09.
Intuit's new strategy involves moving the company's desktop products more toward Web-based applications, software as a service, mobile phones and online social networks, according to spokesman Rich Walker. QuickBooks, for example, would be more connected to Web-enabled applications like Intuit Online Payroll and Merchant Services.
"This is driven by our CEO Brad Smith and our executive leadership team saying we've just completed 25 years in our history," said Walker. "In achieving growth, you have to make very difficult decisions. We're very empathetic to the affected employees."
He denied that the reorganization was tied to financial difficulties, or lowered forecasts from the souring economy. Walker said Intuit was having one of its best years ever from a financial standpoint.
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