NEW YORK (AP) — Pinterest plans to lay off under 15% of its workforce, as part of broader restructuring that arrives as the image-sharing platform pivots more of its money to artificial intelligence.
In a Tuesday securities filing, San Francisco-based Pinterest said it was making these cuts to support “transformation initiatives” — which include reallocating the company's resources to AI-focused roles and prioritizing AI-powered products. It said it was also working to reshape its “sales and go-to-market approach.”
Beyond the coming layoffs, Pinterest said it will reduce office space. The company expects to complete its restructuring plan by the end of September, incurring pretax charges of $35 million to $45 million.
Pinterest's job cuts are expected to impact hundreds of workers. As of the end of last year, Pinterest had a total headcount of about 5,200 employees, the company confirmed to The Associated Press.
Like other tech and social media companies, Pinterest has accelerated its integration of AI recently, particularly in consumer-facing offerings. In October, the company introduced AI-powered updates to users' in-platform “boards” and unveiled Pinterest Assistant, which is also powered by AI and gives users shopping recommendations.
Pinterest isn't the first company to turn to job cuts while pivoting spending to AI. Last fall, Amazon, for example, said it would cut about 14,000 corporate jobs (close to 4% of its workforce) as it ramped up AI investments while trimming costs elsewhere.
Shares of Pinterest fell more than 9% as of midday trading Tuesday.
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