- Pinterest confirmed it will lay off approximately 15% of its employees (700+) by September
- AI hasn’t replaced human workers, but it’s been blamed for cost reduction
- Quarterly revenue growth has been good for a long time
Pinterest has revealed it will reduce its workforce by around 15% in a bid to cut costs – even its office space is being called into question as an internal strategy shift towards AI tools comes into play.
Although the company has not confirmed the exact number of workers it plans to lay off, current estimates claim that 700 to 800 positions will be lost, based on previous headcount figures from 2024 and 2025.
Unsurprisingly, AI is blamed for job losses, but not quite as one might expect, since human jobs are not explicitly replaced by AI robots.
Pinterest to cut more than 700 jobs
Rather than blaming AI for reducing the number of employees it needs, Pinterest says it will shift its staff to AI-focused roles and teams, and prioritize its own AI-powered tools. The third and final factor cited by Pinterest in an SEC filing was “accelerating the transformation of its sales and go-to-market approach.”
Last quarter, the company reported a 17% year-over-year increase in revenue, with CEO Bill Ready highlighting Pinterest’s focus on visual search, which has allowed it to become an “AI-powered shopping assistant for 600 million consumers.”
A company spokesperson said The edge that hiring skilled AI talent will be a priority going forward. “The Company plans to reinvest in key development areas and strategic opportunities,” Pinterest added in the SEC filing.
Pinterest expects the workforce adjustments, which are expected to be completed by the end of September 2026, to cost between $35 million and $45 million. Company stock prices fell about 9-10% following this news.
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