Pinterest announced it will reduce less than 15 percent of its workforce as part of a strategic reallocation of resources towards artificial intelligence (AI) initiatives. The move reflects the social media platform’s focus on AI-driven roles and products, even as it faces stiff competition in the digital ad space from TikTok and Meta-owned platforms like Facebook and Instagram.
Despite the AI-focused strategy, Pinterest shares fell nearly 10 percent following the announcement, as investors remained unconvinced about the company’s path to AI-driven revenue growth.
As of September last year, Pinterest employed 5,205 full-time staff. The planned job cuts would impact fewer than 780 positions. The company intends to close smaller office locations linked to previous acquisitions.
Autodesk recently announced a 7 percent reduction in staff to prioritize AI investments, highlighting a broader trend in the tech sector.
Pinterest has been expanding its AI offerings, including the Pinterest Assistant shopping tool for personalized product recommendations and the Performance+ ad suite for automated campaign management.
The company estimates pre-tax restructuring costs between $35 million and $45 million and expects to complete the workforce restructuring by the end of its third quarter.
