Pinterest to reduce workforce by up to 15% as focus shifts to AI development

New Delhi: Pinterest has announced plans to reduce its global workforce by less than 15%, as part of a broader restructuring effort that includes cutting office space and increasing investment in artificial intelligence. According to a regulatory filing submitted on Tuesday, the job reductions are expected to be completed by late September.

With a total of 4,666 full-time employees at the end of 2024, the layoffs could affect approximately 700 workers. Pinterest said it is reallocating resources to AI-focused teams and roles to support the development and implementation of AI-powered products across its platform. The company estimates pre-tax charges related to the restructuring will range between $35 million and $45 million.

The move aligns Pinterest with other technology firms reshaping their workforces around artificial intelligence. Over the past year, companies across the sector have reduced roles in operations, support and legacy product teams, while expanding hiring in machine learning, data science, and AI product development.

Pinterest has already introduced AI features on its platform, including Pinterest Assistant, an AI companion for shopping inspiration and product recommendations, and experimental personalised boards that curate content automatically based on user interests and behaviour. 

During the company’s most recent earnings call, CEO Bill Ready said Pinterest is leveraging open-source AI models to scale new features efficiently, reducing infrastructure costs compared with building proprietary systems from scratch.

The company has not disclosed which specific teams or regions will be affected but characterised the reductions as a strategic shift rather than a response to immediate financial difficulties. Pinterest, like many of its peers, is positioning AI as a central element of its future growth while trimming parts of its existing workforce to support the transition.