New Delhi: Pinterest is preparing for another round of workforce reductions as the company shifts more of its attention and spending toward artificial
intelligence. The social media platform said on Tuesday that it will cut less than 15 percent of its global staff as part of a broader plan to reallocate resources toward AI-focused roles and product development.
The move comes at a time when major social platforms are racing to position themselves as AI-first companies, even as investors show mixed reactions to these strategies. Pinterest shares fell nearly 10 percent after the announcement, signalling that markets remain cautious about how quickly AI investments will translate into stronger growth.
Pinterest to trim jobs and shrink office footprint
Pinterest had 5,205 full-time employees as of September last year. A cut of less than 15 percent would mean under 780 roles could be impacted. The company said the layoffs will be carried out by the end of September.
Alongside job cuts, Pinterest also plans to close smaller office spaces linked to past acquisitions. The company described the changes as part of a wider effort to streamline operations and focus spending on priority areas.
In a securities filing, Pinterest said it is redirecting resources toward “AI-powered products and capabilities,” with a particular focus on attracting Gen Z users and strengthening its advertising business.
AI push and leadership changes
The layoffs follow recent leadership reshuffles at Pinterest.
Last week, Pinterest hired Lee Brown as its first-ever chief business officer and appointed Claudine Cheever as its new marketing chief. The company’s current revenue chief, Bill Watkins, plans to step down.
These changes are part of CEO Bill Ready’s plan to evolve Pinterest into an “AI-driven shopping destination.”
In a LinkedIn post, Ready wrote, “Over the past three and a half years, we’ve made significant progress at Pinterest: reaching a record 600 million MAU, turning Pinterest into an AI-powered shopping destination and performance ad platform. We’ve done all of this while putting positivity and user well-being at the center of our reason for being.”
Pinterest is facing stiff competition for ad budgets from TikTok and Meta-owned Facebook and Instagram. Investors appear to be watching closely to see whether Pinterest’s AI strategy can help it stand out in a crowded market.
