Pinterest to Lay Off Up to 15% of Workforce in Restructuring
In a strategic overhaul, Pinterest plans a substantial workforce reduction and a realignment of resources toward faster-growing tech areas, notably artificial intelligence. The restructure is framed as a move to accelerate product development and modernize how the platform uses AI to help users discover and buy items they pin.
Officials said the plan would eliminate as many as 700 roles, roughly 15% of the company’s staff. The job cuts are being paired with a shrinkage of real estate and offices as part of a broader effort to streamline operations and reallocate resources to high-potential teams. The shift emphasizes building AI-enabled features and retooling sales and market strategies to better monetize the platform over the long term.
Pinterest has long generated revenue primarily through advertising. In recent quarters, the company has faced softer demand from larger advertisers and a tightening market for online ads, which has contributed to declines in pricing power. Executives pointed to a challenging macro environment and a more cautious spending climate among retailers as factors weighing on near-term revenue.
To support the restructuring, Pinterest anticipates after-tax charges totaling up to $45 million, with most of these costs expected to be cash-related. In tandem with the headcount reductions, the company will scale back office space, reflecting a shift toward leaner operations while continuing to invest in core growth initiatives.
As of December 31, 2024, Pinterest employed 4,666 full-time staff, according to the latest available company filings. The leadership said the transformation should be largely in place by the end of September, positioning Pinterest to pursue longer-term growth through AI-powered experiences that help users discover and purchase products more efficiently through visuals.
The restructuring arrives as Pinterest weighs how to balance an evolving advertising market with investments in AI and product innovation. By focusing on AI-driven product discovery and shopping experiences, the company aims to strengthen monetization opportunities while navigating a period of tighter spend from major brands. The move underscores a broader industry trend where platforms recalibrate workforce and real estate to prioritize the technologies believed to unlock scalable, future growth.
Industry observers note that Pinterest’s pivot toward AI could influence how the platform surfaces product recommendations and integrates shopping features across its pins. For a company built on visual discovery, the strategic emphasis on machine learning and AI tooling is viewed as a natural progression toward more personalized, commerce-enabled experiences that can sustain revenue growth in a competitive digital landscape.
