TLDR
- Pinterest is cutting less than 15% of its workforce, affecting hundreds of employees out of 4,666 total staff as of late 2024
- The company is reallocating resources to AI-focused roles and teams while reducing office space
- Pinterest expects to incur pretax restructuring charges between $35 million and $45 million
- Shares dropped 8% following the announcement on Tuesday morning
- The layoffs are expected to be complete by the end of the third quarter in late September
Pinterest announced Tuesday it will lay off less than 15% of its global workforce. The cuts affect hundreds of employees.
The company filed the news with regulators early Tuesday morning. Pinterest stock fell 8% after the announcement.
Pinterest employed 4,666 full-time workers as of the end of 2024. The layoffs will remove several hundred positions from the company.
The restructuring includes cuts to office space. Pinterest plans to reduce its real estate footprint as part of the changes.
The company is shifting resources toward artificial intelligence. Pinterest will reallocate funds to AI-focused roles and teams.
Over the past year, Pinterest has invested heavily in AI technology. The platform uses AI to help advertisers automate their campaigns.
The company launched a “Pinterest Assistant” shopping tool in October. The AI-powered feature helps users find products.
CEO Bill Ready said in November that AI investments are paying off. He noted Pinterest has become a leader in visual search.
Strategic Shift in Sales and Marketing
Pinterest is also reshaping its sales and marketing strategy. The company faces growing competition from TikTok and Meta’s platforms.
The restructuring comes as Pinterest tries to maintain its position. Facebook and Instagram have increased pressure on the image-sharing platform.
Pinterest has 600 million users who Ready describes as customers. The CEO positioned the platform as an AI-powered shopping assistant.
The company expects the layoffs to finish by late September. That marks the end of Pinterest’s third quarter.
Financial Impact and Industry Context
Pinterest will incur restructuring charges between $35 million and $45 million. The charges are pretax expenses related to the workforce reduction.
The company did not disclose expected cost savings. Pinterest’s filing focused on the near-term costs of the restructuring.
Pinterest stated it plans to reinvest in key development areas. Strategic opportunities remain a priority despite the headcount reduction.
The layoffs follow a pattern in the tech industry. AI was cited as a reason for nearly 55,000 U.S. layoffs in 2025, according to Challenger, Gray & Christmas.
Some experts question whether AI is the real driver. They suggest some companies use “AI-washing” to justify cost cuts.
Pinterest stock traded at $25.01 in premarket activity Tuesday. Barron’s selected the company as a stock pick in June.
The social media platform continues to roll out automated advertising tools. Marketers get more options as Pinterest competes for ad dollars.
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