A massive company now cuts 157 jobs in Idaho after trimming more than one thousand employees globally for not meeting expectations.
Intuit, the tax-preparation software maker that bought an Eagle firm that made digital time sheets, is closing its Eagle site.
A total of one hundred and fifty-seven employees there were laid off as a result, Intuit told the Idaho Statesman.
Intuit laid off around 250 people by closing its Eagle and Edmonton, Canada sites, CEO Sasan Goodarzi said in a message to all employees Wednesday morning.
The company also dismissed a total of 1,050 employees who “are not meeting expectations,” trimmed executive jobs by 10% and cut 300 other jobs companywide, resulting in the loss of 1,800 jobs in all, Goodarzi said.
This is 10% of the company’s workforce.
“We are grateful for the amazing contributions and impact our employees and the Boise community have made on Intuit,” Sara Day, a public relations spokesperson, told the Statesman in an email.
The majority of Intuit’s Boise employees worked in tech and customer-success roles, Day said.
Intuit had purchased TSheets, one of the Treasure Valley’s fastest-growing technology startups, in 2017 for $340 million, the Statesman previously reported.
TSheets had 260 employees at that time, according to Statesman and Idaho Business Review reporting.
Goodarzi said the layoffs would allow Intuit to “reinvest in the necessary skills and capabilities” and hire 1,800 new people mostly in engineering, product and customer-facing roles like sales, customer success and marketing.
The layoffs were first reported by The Wall Street Journal.
Day told the Statesman that Intuit is strategically growing its technology teams and capabilities.
The company will focus on key growth sites in Atlanta, Bangalore, New York, Tel Aviv and Toronto, Day said.
These locations are “resourced with the product and technology teams that are accountable for end-to-end ownership of discrete technology capabilities and critical customer problems,” she said.
The dismissed Intuit employees will be able to receive a minimum of 16 weeks of pay and two additional weeks for every year of service, Goodarzi said.
Intuit said it will also provide six months of health insurance coverage and access to mental health support during the transition period.
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Other Economy News Today
Applications for unemployment benefits now surge to new highs, a sign that the white-hot labor market is starting to cool off.
First-time applications for unemployment benefits rose last week to 231,000, the highest level since August, per CNN.
Thursday’s data also showed that the number of continuing claims, or applications from people who have filed for unemployment for at least one week, was 1.78 million.
That’s an increase of 17,000 from the prior week, according to the Bureau of Labor Statistics.
The latest numbers come less than a week after the monthly jobs report showed the US economy added just 175,000 positions in April, less than economists expected and a steep drop-off from prior months.
US employers have now added an average of 245,500 jobs per month, versus 2023’s 251,000-per-month average.
Still, hiring remains strong. Although the unemployment rate ticked up to 3.9% last month, it’s the 27th consecutive month that the jobless rate has held under 4%, matching a streak last seen in the late 1960s.
Weekly jobless claims data tends to be volatile but, while one week’s worth of data “does not a trend make,” said Chris Rupkey, chief economist at Fwdbonds.
“We can no longer be sure that calm seas lie ahead for the US economy if today’s weekly jobless claims are any indication.”
“Company layoffs are picking up, hinting at caution on the part of companies as they weigh the outlook for the second half of the year,” he wrote in a note Thursday.
The Federal Reserve has been battling inflation by raising its key lending rate in the hopes of slowing the economy.
While the labor market has so far resisted those efforts, remaining white hot for the past 18 months despite 11 rate hikes from the central bank, Fed Chair Jerome Powell said last week that demand has “cooled from its extremely high level of a couple of years ago.”
Ian Shepherdson at Pantheon Economics said in a note Thursday: “We’d need to see at least a month of elevated readings to convince us that the trend really has turned.”
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Also Read: A Giant Company Now Announces Unexpected Layoffs in Virginia
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