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Layoffs at Intuit are under way (apparently this happened in June and 575 people were let go). Approximately 600 people will be let go. “We invest where the puck is going to be”, said Brad Smith, Intuit’s CEO. He plans to reinvest whatever savings accrue from the cuts into online software initiatives.
The maker of QuickBooks, TurboTax, and Quicken personal finance software is being ravaged by a host of small niche players offering free web based applications, featuring slick designs, community portals, online user interaction, and other social media features. In fact, the company has built several Facebook widgets, including one that offers tax tips.
Online versions of their software grew 27% last year compared to just 7% for their PC based products. Intuit is not the only company getting hit; in fact, Microsoft has decided to pull the plug on desktop versions of its personal finance software and is working on releasing a web only version.
Smith, a first time CEO, is meeting with tech industry icons to bring the company into the internet age. He met with Hewlett-Packard CEO, Mark Hurd, whose company is laying off 25,000 or 7% of its workforce and now, Intuit is laying off 7% of its workforce. He met with Sheryl Sandberg, COO, at Facebook whose job is to increase the time users spend on Facebook and thus, increase ad revenue. Soon Intuit released Facebooks apps and widgets. Then, he met with Google and was told that employees there spend 10% of their time on personal projects; now Intuit engineers spend 10% of their time on personal projects. The result: Intuit is planning on releasing a social network on cell phones around your banking activity. Finally, he met with former Adobe Systems CEO, Bruce Chizen, to talk about enacting rapid change without driving employees crazy.
My advice: don’t believe everything your hear. Focus on your core product, deeper specialization and SaaS enablement to start. The 10% that Google employees get is simply a myth. It is a recruiting tactic with an entire PR department dedicated to perpetuating it. Only a few employees have that privilege. The daily barrage of product releases at Google are aimed at diversifying the company revenue stream and reduce its dependence on online advertising. So far, it has not worked.
Channels: intuit, layoffs, Social Media
I received a call from Diana Carlini at Intuit's corporate communications group. She said my post was inaccurate and she demanded that I take it down immediately. She said the layoffs had already happened in June. She went on to ask if I had an attorney. She then said "Let me speak to your manager!"
I told her that if she wanted to express her view to post a comment on the blog. She said the comments were closed. Then I told her that if she sent me an email I would post it. She said "Excuse Me!"
Bottom line is she totally came off the wrong way.
I also told her that I will post the discussion on the blog.
Comment by Daya Baran — October 8, 2008 @ 6:40 AM
Daya,
Your post about Intuit is inaccurate. Perhaps you were thinking of our announcement back in June. At that time, Intuit announced it would reduce headcount by 575 positions. We have since completed that action. Can you please correct your post?
As part of the comms team at Intuit,I'm available to answer any questions. We would appreciate your help in making this accurate.
thanks. Diane
Comment by Diane Carlini — October 8, 2008 @ 6:42 AM
Diane,
Why did you threaten Daya when you could have asked nicely the first time?
Joe
Comment by Joe Bartlow — October 15, 2008 @ 9:07 PM
This idiocy among Intuit ranks is so typical. The company itself is evil to the core, and the worker-bees are simply brainwashed minions. She's focusing on "The Big Y"… (don't ask , it's a cult thing at crazy Intuit headquarters).
I regret the 2 years I spent at this rusty, clunky, top-heavy company. And if anyone from this filthy hopeless company asks me if I have a lawyer, I will stop at no end to smear their name and reputation across every available media outlet that exists.
Comment by Staever Young — October 21, 2008 @ 1:54 PM