- Pinterest has confirmed that it will lay off about 15% of its employees (700+) by September
- AI has not replaced human workers, but it is being blamed for the cost savings
- Quarterly revenue growth has been in a good place for a long time
Pinterest has revealed it will cut its headcount by around 15% as it looks 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 employees it expects to lay off, current estimates claim that 700-800 roles will be lost, based on previous headcount figures from 2024 and 2025.
Not surprisingly, AI is being blamed for the job losses, but not quite in the way you might expect, since human jobs are not explicitly being replaced by AI bots.
Pinterest is set to cut around 700+ jobs
Rather than blame AI for reducing the number of employees it needs, Pinterest says it will shift staff to AI-focused roles and teams and prioritize its own AI-powered tools. The third and final factor Pinterest cited in an SEC filing was “accelerating the transformation of its sales and go-to-market approach.”
Last quarter, the company posted a 17% year-over-year increase in revenue, with CEO Bill Ready noting Pinterest’s focus on visual search enabled it to become an “AI-powered shopping assistant for 600 million consumers.”
A spokesperson for the company said so The Verge that hiring AI-savvy 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, to be completed by the end of September 2026, will have cost between $35-45 million. The company’s share prices fell around 9-10% after the news.
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