By Jaspreet Singh
Jan 27 (Reuters) - Pinterest said on Tuesday it would trim its workforce by less than 15% and reduce office space, as the social media company looks to reallocate resources to artificial intelligence-focused roles and initiatives.
The announcement comes as the company competes with TikTok and Meta-owned Facebook and Instagram for digital advertising budgets, as these platforms continue to draw marketers with their extensive user base.
Pinterest had 5,205 full-time employees as of September
2025. The latest job cut would translate to less than 780 positions.
Top executives at the World Economic Forum's annual meeting said while jobs would disappear, new ones would spring up, with two telling Reuters that AI would be used as an excuse by companies which were planning layoffs anyway.
Last week, design software maker Autodesk also announced a 7% job cut to redirect investments to its cloud platform and AI efforts.
"Many companies are having to show investors that their substantial spend on AI is not only worth it but also that they are making cuts elsewhere in order to fund it," said Danni Hewson, head of financial analysis at AJ Bell.
Pinterest also said it plans to close smaller office spaces related to its acquisitions. Its shares were down 3.5% in volatile premarket trading.
The company said it expects pre-tax restructuring charges of about $35 million to $45 million and that it would complete the restructuring plan by the end of its third quarter through September 30.
The platform enables users to create personalized pinboards, which are often labeled with topical categories such as "spring outfits" or "canvas conversations", by collecting and organizing content from retailers, brands, creators, publishers and users.
Layoffs.fyi, a website tracking tech job cuts, estimated that more than 123,000 employees were laid off from 269 companies in 2025.
(Reporting by Jaspreet Singh in Bengaluru, additional reporting by Anhata Rooprai in Bengaluru; Editing by Shilpi Majumdar)
