Francisco-based Pinterest announced on Tuesday a significant restructuring plan that includes laying off about 15 percent of its global workforce, as the visual discovery platform intensifies its focus on Artificial Intelligence (AI).
In a regulatory filing with the U.S. Securities and Exchange Commission, Pinterest revealed that the board-approved plan will reduce headcount, scale back office space, and reallocate resources toward AI-driven priorities.
The company expects to complete the layoffs by late September.Pinterest ended 2024 with 4,666 full-time employees.
A cut of less than 15 percent would affect roughly 700 workers, though the exact number could be slightly lower depending on final calculations.
The move is framed as a strategic shift to accelerate AI adoption.
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The filing states that Pinterest is reallocating resources to AI-focused roles and teams that drive AI adoption and execution while prioritizing AI-powered products and capabilities.
This comes amid broader industry trends, where tech companies are heavily investing in generative AI and machine learning to enhance user experiences and stay competitive.
The company has already rolled out several AI features in recent months, including the launch of Pinterest Assistant, an AI companion that provides shopping advice and personalized recommendations through natural language conversations.
It has also experimented with AI-generated personalized boards to help users discover and organize content more effectively.
During its most recent earnings call, CEO Bill Ready highlighted the advantages of open-source AI models, noting they allow Pinterest to innovate quickly while managing costs more efficiently than proprietary alternatives.
The restructuring is expected to result in pre-tax charges of approximately $35 million to $45 million, primarily related to severance, benefits, and other related expenses.
Pinterest did not immediately disclose which departments or regions would be most impacted.
The announcement follows a pattern seen across the tech sector, where companies from Meta to Google have restructured teams to prioritize AI amid economic pressures and investor demands for faster returns on emerging technologies.
Pinterest’s stock reacted negatively in early trading following the news, reflecting investor concerns over short-term costs despite the long-term AI growth narrative.
