Pinterest cites artificial intelligence in laying off 15% of workforce

Pinterest, the popular social media platform known for allowing users to find and save recipes, decor, and other content, is set to undergo a significant restructuring. The company announced plans to reduce its workforce by 15% in order to reallocate resources towards the development of its artificial intelligence capabilities. This move is part of Pinterest’s strategy to enhance its AI-forward approach and accelerate the adoption of AI-powered products.

According to a regulatory filing released by the San Francisco-based company, the workforce reduction will impact “less than 15% of the company’s workforce” and will also involve office space reductions. Pinterest aims to cut costs to generate more cash flow for hiring AI-proficient talent, developing AI-powered products, and improving sales processes.

“We are making organizational changes to further deliver on our AI-forward strategy, which includes hiring AI-proficient talent,” a spokesperson from Pinterest stated. “As a result, we’ve made the difficult decision to say goodbye to some of our team members.” With a current workforce of 4,666 employees, Pinterest is looking to streamline its operations and focus on AI technology.

The restructuring plan is expected to be completed by September 30, 2026, and will incur pre-tax charges of approximately $35 million to $45 million. This decision by Pinterest follows a trend among companies to prioritize AI technology in their business strategies. Just recently, Nike announced the layoff of approximately 775 employees as part of its efforts to streamline operations and leverage advanced technology and automation.

As Pinterest navigates through this restructuring process, the company remains committed to enhancing its AI capabilities and delivering innovative solutions to its users. Stay tuned for updates on Pinterest’s transformation journey.

This article was edited by Aimee Picchi.