Pinterest to lay off 15% of workforce amid AI push
What's the story
Pinterest has announced plans to lay off less around 15% of its global workforce as part of a major restructuring effort. The decision comes as the firm accelerates its shift toward artificial intelligence (AI). The move is expected to impact some 700-800 employees and is aimed at realigning Pinterest's cost structure, product roadmap, and hiring priorities for an AI-driven future.
Cost impact
Restructuring effort and financial implications
The layoffs were revealed in a regulatory filing and confirmed by company statements yesterday. Pinterest said the cuts are part of a broader restructuring effort to redirect resources toward AI development, while streamlining teams that no longer align with its long-term strategy. The company also plans to consolidate operations and lower office space, expecting pre-tax charges from the restructuring between $35 million and $45 million.
Market challenges
Pinterest's AI integration and competition
Pinterest's decision comes at a critical juncture as it faces stiff competition from TikTok, Meta, and other AI-native discovery tools. While advertising growth has stabilized, it remains under pressure. Management believes that deeper AI integration will improve personalization, shopping conversion rates, and long-term revenue efficiency. The layoffs are not aimed at short-term survival but rather capital reallocation for future growth.
Strategic shift
Investment in machine learning models
Over the past year, Pinterest has invested heavily in machine learning models that power search relevance, visual discovery, and shopping recommendations. These systems need fewer traditional roles but more specialized AI talent. As a result, Pinterest is downsizing the teams tied to older workflows while investing more in automation-driven product development. The layoffs are global and span the United States, Europe, and parts of Asia.