Pinterest plans to lay off less than 15% of its workforce as part of a restructuring that shifts more resources toward artificial intelligence.
The company also expects to reduce its office space and reevaluate its sales and marketing strategy, according to a securities filing. Pinterest hopes to complete the changes by the end of its third quarter in late September.
Investors reacted quickly, sending Pinterest shares down more than 9% as the company positions itself around AI-powered products and capabilities.
Restructuring reflects Pinterest’s AI priorities
According to CNBC, Pinterest said the layoffs are part of a broader effort to redirect spending toward AI and product development. The company disclosed in its filing that it is “reallocating resources” to AI-focused roles and prioritizing AI product development while reshaping its sales and marketing approach.
The job cuts are expected to affect hundreds of employees. Pinterest had 4,500 employees globally as of last spring, and the company later confirmed to The Associated Press that its headcount was close to 5,200 at the end of 2025.
Pinterest stated that it expects to record between $35 million and $45 million in pre-tax restructuring charges as it implements its plan. The company also intends to reduce its office space to place greater emphasis on AI as part of its restructuring. Investors responded quickly to the news, with Pinterest shares dropping sharply.
According to Yahoo Finance, Pinterest’s shares fell more than 9% during Tuesday’s (Jan. 27) trading as markets considered the extent of the layoffs and the company’s shift toward AI-focused initiatives.
Pinterest doubles down on AI-powered shopping tools
Pinterest has spent the past year speeding up its AI integration across the platform, particularly in consumer-facing tools meant to improve personalization and discovery.
The Associated Press reported that in October, the company introduced AI-powered updates to users’ boards and unveiled Pinterest Assistant, which gives users shopping recommendations.
CNBC reported that Pinterest CEO Bill Ready has pointed to these investments as central to the company’s future. In November, Ready said that Pinterest’s investments in AI and product innovation are paying off.
“We’ve become a leader in visual search and have effectively turned our platform into an AI-powered shopping assistant for 600 million customers,” Ready said.
At the same time, Pinterest has expanded its automated advertising tools for marketers as it faces intensifying competition from TikTok and Meta’s Facebook and Instagram.
Tech layoffs continue as companies invest in automation
Pinterest’s cuts reflect a broader trend across the technology sector, where companies have reduced headcount while increasing spending on AI and automation.
As The Associated Press noted, Pinterest isn’t the first company to pursue layoffs while shifting investment toward AI. Amazon, for example, previously announced major job cuts as it ramped up AI investment while trimming costs elsewhere.
According to CNBC, some experts have questioned whether AI is the real source of job reductions, noting some companies could be “AI washing,” using the technology as a convenient explanation for job cuts.
Read our coverage of Indeed’s report on AI as a job requirement to know how hiring expectations are shifting.