Mailchimp owner lays off 1,800, to consolidate tech jobs in Atlanta and other cities – Atlanta Business Chronicle

Mailchimp owner Intuit Inc. laid off about 1,800 employees last week, which is about 10% of the company’s workforce.

A spokesperson declined to comment on how many employees are based in Atlanta and how many employees were laid off in Atlanta. As of July 31, 2023 the company had about 18,200 employees globally.

Intuit (Nasdaq: INTU) plans to consolidate 80 tech roles to sites including Atlanta; Bangalore, India; New York; Tel Aviv, Israel; and Toronto, CEO Sasan Goodarzi said in an email to employees.

Intuit cut about 10% of its executives and eliminated about 300 roles across the company. It let go of about 1,050 employees who did not meet expectations and would be “more successful outside of Intuit,” Goodarzi said in the email.

The company will close its offices in Boise and Edmonton, which have over 250 employees. Some of these workers will be relocated. Intuit did not further disclose which offices or areas of its business were impacted by the layoffs. The company has 19 offices in eight countries, according to its website.

Intuit owns Mailchimp, QuickBooks, Credit Karma and TurboTax.

The layoffs and office closures are part of Intuit’s plans to reorganize its business investments, according to filings with the Securities and Exchange Commission. The company said it plans to hire about the same number of employees it let go by fiscal year 2025 in areas including engineering, product, sales, marketing and customer success.

The company plans to invest further in generative artificial intelligence, data, payment solutions, capital, banking, invoicing solutions and international growth.

Intuit’s restructuring plan is going to cost $250-260 million, which includes expenditures for severance payments, employee benefits, share-based compensation and costs related to closing the offices, according to SEC filings.

The company has already spent about $182 million on staffing for higher headcount during the first nine months of fiscal year 2024, according to the company’s quarterly financial report in May.

For those who were laid off in the United States, former employees will get a minimum of 16 weeks pay and an additional two weeks for each year the person has been at the company, per SEC filings. These people will remain employed 60 days before their last day, which will be Sept. 9.

Intuit will provide at least six months of health insurance coverage, access to Employee Assistance Program, and career transition and job placement services, the company said. For former employees who have immigration visas, the company will provide free access to external immigration experts.