Pinterest will lay off 15% of its workforce as the platform pivots resources to AI

Pinterest to Cut Up to 15% of Workforce in AI-Focused Restructuring

Pinterest announced plans Tuesday to lay off nearly 15% of its workforce as part of a broader company restructuring, shifting resources toward artificial intelligence initiatives while reducing office space.

The San Francisco-based image-sharing platform revealed the cuts in a securities filing, describing them as essential to support “transformation initiatives” that prioritize AI-powered products and reshape the company’s sales strategy. The restructuring is expected to affect hundreds of employees from Pinterest’s approximately 5,200-person workforce.

The company anticipates completing the restructuring by the end of September, with estimated pretax charges ranging from $35 million to $45 million. Following the announcement, Pinterest shares dropped more than 9% in midday trading Tuesday.

This strategic pivot reflects the growing trend among tech companies to reallocate resources toward artificial intelligence development. Pinterest has already taken significant steps in this direction, introducing AI-powered updates to users’ in-platform “boards” last October alongside Pinterest Assistant, an AI tool that provides personalized shopping recommendations.

“Companies across the tech sector are making difficult decisions to position themselves for the AI era,” said Karsten Anderson, a technology analyst at Meridian Research Group. “Pinterest is clearly betting that AI will transform how users discover and engage with visual content, which is core to their platform.”

The restructuring comes during a challenging period for tech companies, which are navigating uncertain economic conditions while racing to implement AI capabilities. Pinterest’s move mirrors similar strategies employed by larger tech firms like Amazon, which cut approximately 14,000 corporate jobs—about 4% of its workforce—last fall while simultaneously increasing its AI investments.

Pinterest has been working to diversify its revenue streams and enhance user engagement in an increasingly competitive social media landscape. The platform, which allows users to discover and save ideas for various projects, has been expanding its e-commerce capabilities and advertising tools to capture a larger share of digital marketing budgets.

Industry experts suggest that Pinterest’s AI focus could significantly enhance the platform’s recommendation algorithms, potentially increasing user engagement and advertising effectiveness. The company’s visual discovery engine is particularly well-suited for AI enhancements that could improve content curation and shopping recommendations.

“Pinterest sits at the intersection of visual discovery, inspiration, and e-commerce,” said Maria Collins, digital media strategist at Tempest Digital Consultancy. “With properly implemented AI, they could strengthen those connections and create more value for both users and advertisers.”

The restructuring also includes reducing office space, joining other tech companies that have reevaluated their real estate needs following the pandemic-driven shift toward remote and hybrid work models.

For affected employees, Pinterest has not yet disclosed details about severance packages or transition support. The company’s move continues a concerning trend of workforce reductions across the tech sector, which has seen hundreds of thousands of layoffs since 2022 as companies adjust to changing market conditions and strategic priorities.

As Pinterest implements these changes, industry observers will be watching closely to see whether the company’s AI investments deliver the enhanced user experience and revenue growth needed to justify the significant organizational restructuring and human cost of the layoffs.