Bob Scott reporting in his weekly Insights column.
Intuit says it has laid off 399 people. That compares to about 8,000 full-time employees it reported when its fiscal 2014 ended on July 31. The company said this week cuts were made across several business and functions. Affected employees will be given the opportunity to apply for jobs elsewhere in the company. A spokesperson said the company had made “organizational changes that drive greater alignment with the company’s priorities”. Throughout the last year, Intuit has talked about its moving resources to support its growing online area. The company has had a financial dip, owing to the adjustments made in order to move from desktop to online products, although the layoff announcement did not cite that as involved in the job decisions. Intuit’s TurboTax outpaced the tax chains and other consumer packages during the 2015 tax season and its QuickBooks Online accounting systems has been booming. However, the company’s decision to recognize revenue ratably for its QuickBooks and ProTax desktop products—Lacerte and ProSeries—pushed millions in revenue out of the year ending July 31. For the nine months ended April 30, ProTax revenue was $177 million, a decrease of 55 percent from $394 million in last year’s corresponding period. Operating income for the segment fell to $43 million for the most recently reported period, off 85 percent from $276 million a year earlier. Small Business revenue, which includes QuickBooks products, was down 1 percent, and the change in revenue recognition for desktop products offset growth from QuickBooks Online.