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. Pinterest stated it will be reallocating resources to AI-focused roles and teams that drive AI adoption and execution. The company is prioritizing AI-powered products and capabilities.
Pinterest had 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, Pinterest launched an AI companion called Pinterest Assistant, which users can talk to for shopping advice and recommendations. The company has also begun experimenting with AI-powered personalized boards.
During Pinterest’s most recent earnings call, CEO Bill Ready emphasized the promise of open-source AI models to help the company keep costs down.
The company said it expects to record pre-tax restructuring charges related to this move of approximately thirty-five to forty-five million dollars.