Pinterest announced on Tuesday that it will reduce its workforce by approximately 15 percent this year to reallocate resources toward artificial intelligence initiatives. The San Francisco-based company said the cuts, which will affect fewer than 15 percent of employees, will also include reductions in office space.
The company stated that the layoffs are part of a broader plan to create cash flow for AI-focused teams, AI-powered products, and to improve the efficiency of its sales operations. “We are making organizational changes to further deliver on our AI-forward strategy, which includes hiring AI-proficient talent,” a Pinterest spokesperson said. “As a result, we've made the difficult decision to say goodbye to some of our team members.”
Founded in 2008, Pinterest allows users to discover and save content such as recipes and home decor while also shopping for products. The company currently employs 4,666 people, according to FactSet.
Pinterest plans to complete the restructuring by September 30, 2026, with expected pre-tax charges of $35 million to $45 million. The company is joining a growing list of firms citing artificial intelligence as a reason for workforce reductions. For example, Nike announced on Monday that it would cut around 775 employees to streamline operations and accelerate the adoption of advanced technology and automation.
The move reflects a shift in the tech industry, where companies are increasingly investing in AI capabilities to drive growth, improve products, and remain competitive. By focusing on AI, Pinterest hopes to strengthen its platform, enhance personalized experiences for users, and expand its AI-driven sales and advertising strategies.
While the layoffs are difficult for employees affected, Pinterest emphasizes that the restructuring will enable the company to focus on innovation and long-term growth. The company’s spokesperson highlighted that AI-proficient talent will be prioritized, signaling Pinterest’s commitment to positioning itself as a leader in integrating artificial intelligence into its products and operations.
Overall, the layoffs are part of a larger trend of tech companies reshaping their workforce and resources to adapt to AI and automation, aiming to balance cost savings with technological advancement.
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