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Intuit Inc. announced on Wednesday, July 10 that it will be reducing its workforce by 1,800 employees, joining the growing list of tech companies making significant job cuts.

In a letter to employees, Chief Executive Officer Sasan Goodarzi stated that approximately 10% of the global workforce will be impacted.

Intuit to Lay Off 1,800 Employees

According to a spokesperson, the company's decision to make this move is not driven by cost-cutting measures. They reassured that the company plans to bring back the same number of employees, with a focus on roles in engineering, product development, and sales.

The software company's shares experienced a 1.6% decline in premarket trading following the release of the news, Bloomberg reported.

An additional 300 positions are being cut as part of an effort to optimize operations and redirect resources towards areas of significant growth, according to an email statement.

Intuit, a company based in Mountain View, California, has announced plans to close its offices in Boise, Idaho and Edmonton in Alberta, Canada. These closures will affect over 250 employees. According to the company, a portion of the workers will be relocated to different sites.

Intuit Employees to Receive Severance Pay

Regarding severance, Intuit has announced that all laid off US employees will receive a minimum of 16 weeks of pay. In addition, they will be given two extra weeks of pay for each year of service and a minimum of six months of health insurance coverage.

Employees in the United States were given a 60-day notice regarding their termination, with their last day being September 9, according to Click on Detroit.

According to a regulatory filing, Intuit has projected that the reorganization plan will result in charges of approximately $250 million to $260 million, with the majority of these charges expected to occur in the company's fiscal fourth quarter ending on July 31.