Intuit Lays off 399 Employees in Organizational Overhaul

Tax preparation software maker Intuit confirmed it has laid off 399 people, or about 5 percent of its 8,000 headcount, in a workforce reduction the Mountain View, CA-based company described as a realignment of its priorities.

TechCrunch also reported that Patrick Barry, vice president and general manager of Intuit’s Demandforce unit, no longer will lead the business but will remain on in undisclosed role. Intuit bought Demandforce, which produces marketing for small businesses, in 2012 for some $424 million.

“I can confirm that over the last few days we’ve communicated organizational changes that drive greater alignment with the company’s priorities,” an Intuit spokesperson told the Silicon Valley Business Journal.

“Intuit is a growing company and to keep our momentum going, we have increased clarity of our strategy and are matching our investment decisions–our time, people and dollars against our strategic goals that make the largest impact on customers’ lives and business outcomes,” the spokesperson said.

Intuit said it will provide workers who lost their jobs with separation packages and career assistance. The vendor said that laid off employees are free to seek employment from other areas within the company.

The company has enacted lay offs of a similar nature two other times in the past seven years, cutting some 300 jobs in 2009 and 575 positions a year earlier.

In its Q3 ended April 30, Intuit recorded $2.2 billion in revenue, ahead of its previously set guidance but an 8 percent slide from the same time last year.

The vendor posted a $906 million operating income for the quarter, or $1.78 a share, for a 39 percent tumble from the $1.5 billion or $3.39 a share it turned in last year.

For the period, Intuit said it grew QuickBooks Online subscribers by 55 percent, adding 120,000 QuickBooks Online subscribers and closed the quarter with 965,000 paying customers worldwide.

For Q4, Intuit is projecting revenue of $720 million to $745 million and a GAAP operating loss of $120 million to $140 million, the company said.