Pinterest Plans Layoffs to Prioritise AI Strategy

Social media platform Pinterest is moving toward workforce reductions as it places artificial intelligence at the centre of its future strategy. According to a Reuters report, the company has decided to cut up to 15 percent of its total workforce. Following the announcement, Pinterest’s share price fell by nearly 10 percent in the stock market.

Pinterest said it is reorganising its existing resources and workforce to place greater emphasis on AI-driven roles and strategies. As part of the restructuring, the company is also planning to shut down some smaller office spaces related to past acquisitions.

As of September last year, Pinterest had 5,205 full-time employees. Based on that figure, fewer than 780 employees could be affected by the layoffs. The company aims to complete the entire process by September 30.

However, analysts believe Pinterest’s AI roadmap is not yet clear enough to restore investor confidence. Jeremy Goldman, an analyst at eMarketer, said that without a clear path to cost savings or direct revenue generation from AI, the layoffs appear more defensive than strategic. Intense competition in the digital advertising market from TikTok as well as Meta-owned Facebook and Instagram is also adding pressure.

Pinterest noted that the restructuring process could result in pre-tax charges ranging between $35 million and $45 million. The company has already launched AI-powered services such as the “Pinterest Assistant” for personalised product recommendations and “Performance Plus” to automate advertising campaigns.

The move once again highlights a growing trend across the technology sector, where companies are resorting to workforce reductions to manage the rising costs of investing in artificial intelligence.

DBTech/BMT/OR