- Pinterest is set to lay off approximately 15% of its workforce (700+) by September
- While AI has not taken over human roles, it is being cited as a factor in the cost-cutting measures
- Quarterly revenue growth has remained strong for an extended period
Pinterest has announced plans to reduce its workforce by around 15% as part of its cost-cutting strategy, which also questions the necessity of its office spaces amidst a shift towards AI tools.
Although Pinterest hasn’t disclosed the exact number of layoffs, estimates suggest that approximately 700 to 800 roles will be affected based on prior headcount statistics from 2024 and 2025.
While many are quick to blame AI for these job losses, it’s important to note that human positions are not being directly replaced by AI bots.
Pinterest Set to Cut Around 700+ Jobs
Instead of attributing the layoffs solely to AI, Pinterest plans to reassign its workforce to roles centered around AI and prioritize the development of its own AI-driven tools. Additionally, the company’s SEC filing highlighted a focus on “accelerating the transformation of its sales and go-to-market strategy.”
In the most recent quarter, Pinterest reported a remarkable 17% year-over-year revenue growth. CEO Bill Ready stated that Pinterest aims to leverage visual search technology, transforming into an “AI-powered shopping assistant for 600 million consumers.”
A spokesperson for Pinterest mentioned to The Verge that acquiring talent skilled in AI will be a top priority moving forward. “The company plans to reinvest in critical development areas and strategic opportunities,” Pinterest stated in its SEC filing.
Pinterest anticipates that the workforce changes, expected to conclude by the end of September 2026, will incur costs between $35 to $45 million. Following the announcement, the company’s share prices experienced a drop of approximately 9-10%.
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In conclusion, while Pinterest’s upcoming layoffs raise concerns, the company emphasizes a proactive approach to harnessing AI technology and reshaping its workforce. As it adjusts its strategies, the focus remains on innovation and staying competitive in the evolving tech landscape.
