- Pinterest has confirmed that it will lay off around 15% of its workers (more than 700) in September
- AI hasn’t replaced human workers, but it’s being blamed for cost reductions
- Quarterly revenue growth has been in a good place for a long time
Pinterest has revealed it will reduce its workforce by around 15% as it looks to cut costs; Even their office spaces are being questioned as an internal strategy shift towards artificial intelligence tools comes into play.
Although the company has not confirmed the exact number of workers it expects to lay off, current estimates claim that between 700 and 800 jobs will be lost, based on previous figures from 2024 and 2025.
Unsurprisingly, AI is being blamed for job losses, but not in the way you might expect, as human jobs are not explicitly being replaced by AI robots.
Pinterest prepares to eliminate more than 700 jobs
Instead of blaming AI for reducing the number of staff it needs, Pinterest says it will move staff into 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 to “accelerate the transformation of its sales and marketing approach.”
Last quarter, the company achieved a 17% year-over-year increase in revenue, and CEO Bill Ready highlighted Pinterest’s focus on visual search, allowing it to become an “AI-powered shopping assistant for 600 million consumers.”
A company spokesperson said The edge that hiring AI-savvy talent will be a priority in the future. “The company plans to reinvest in key areas of development and strategic opportunities,” Pinterest added in the SEC filing.
Pinterest expects the workforce adjustments, which will be completed by the end of September 2026, to have cost between $35 million and $45 million. The companies’ share prices fell between 9% and 10% following the news.
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