Pinterest announced on Tuesday that it will lay off less than fifteen percent of its workforce. This decision is part of a plan to reduce office space and reallocate resources toward the company’s artificial intelligence initiatives.
According to a regulatory filing, the company expects these layoffs to be completed by late September. The filing stated that Pinterest will be reallocating resources to AI-focused roles and teams that drive AI adoption and execution. It also noted a shift toward prioritizing AI-powered products and capabilities.
Pinterest reported having 4,666 full-time employees at the end of 2024. Based on that figure, approximately 700 workers will be affected by the cuts.
This move aligns with broader industry trends, as Pinterest and other technology companies continue to invest heavily in AI. Several months ago, the company launched the Pinterest Assistant, an AI companion designed to provide users with shopping advice and recommendations. Pinterest has also begun experimenting with AI-powered personalized boards.
During the company’s most recent earnings call, Pinterest CEO Bill Ready highlighted the potential of open-source AI models to help control costs. The company stated it expects to record pre-tax restructuring charges related to this move of approximately thirty-five to forty-five million dollars.