Intuit Cuts 17% Workforce as TurboTax Live Sales Jump 36%
TRI•Intuit shares have fallen approximately 65% below their 52-week high as the DIY tax business struggles with price-sensitive filers. TurboTax Live revenue is projected to grow 36% with a 38% customer increase, lifting assisted tax to 53% of TurboTax revenue, while a 17% workforce reduction aims to accelerate margin expansion.
1. DIY Tax Segment Struggles
Intuit’s core do-it-yourself tax unit is underperforming as price-sensitive filers shift away, driving shares to trade about 65% below their 52-week high. Management acknowledges lost market share in the $5 billion DIY category and describes results as “constructively dissatisfied.”
2. Surge in Assisted Tax with TurboTax Live
The company is pivoting to the $37 billion assisted tax market, where TurboTax Live connects users with experts. Revenue from this segment is expected to climb 36% this year and customer count 38%, pushing assisted services to represent 53% of total TurboTax revenue, up 11 percentage points year-over-year.
3. Workforce Reduction and Margin Strategy
A recently approved 17% full-time headcount reduction is intended to streamline operations and support higher-growth business lines. With operating margin at a three-year peak, the leaner cost structure is designed to fuel growth engines and sustain long-term margin expansion.
