Pinterest to cut workforce by less than 15% to focus on AI

Pinterest announced on Tuesday that it plans to lay off less than 15% of its workforce as part of a restructuring effort. According to an official document submitted to government authorities (a regulatory filing), the company expects to complete the layoffs by late September. The workforce reduction is expected to affect roughly 700 employees, a figure calculated from the 4,666 full-time employees Pinterest reported having at the end of 2024. The company is undertaking these staff cuts to reduce its expenditures on office space and to reallocate its resources toward artificial intelligence initiatives.

The restructuring marks a significant shift in Pinterest’s operational focus. In the official document submitted to government authorities, the company stated that it is “reallocating resources to AI-focused roles and teams that drive AI adoption and execution” while prioritizing its AI-powered products and capabilities. This transition will result in immediate financial impacts. Pinterest expects to record pre-tax restructuring charges of about $35 million to $45 million as it carries out the layoffs and reorganizes its teams.

This strategic pivot follows a series of recent AI-focused product rollouts. A few months ago, the company launched Pinterest Assistant, an AI companion designed to provide users with shopping advice and recommendations. Pinterest has also started experimenting with AI-powered personalized boards. During the company’s last earnings call, Pinterest CEO Bill Ready emphasized the promise of open-source AI models to help the company keep its costs down as it scales these new features.

Why it matters

Pinterest is reducing its workforce by less than 15% to cut office space costs and reallocate resources toward AI initiatives.