Pinterest to Cut Nearly 15% of Workforce as It Shifts Focus to AI

SAN FRANCISCO — Pinterest said it will reduce its workforce by just under 15%, as the image-sharing platform redirects spending and talent toward artificial intelligence initiatives amid intensifying competition in the digital advertising market.

The move affects fewer than 780 roles, based on the company’s most recent headcount, and will be accompanied by the closure of smaller office locations tied to past acquisitions.

Despite the strategic pivot, investor reaction was muted. Pinterest shares fell sharply after the announcement, reflecting skepticism over whether the company’s AI investments will translate into meaningful revenue growth in the near term.

Investors Question AI Payoff

Market analysts noted that while many technology firms are embracing AI, investors are increasingly demanding clear financial returns rather than broad promises.

Some observers said the layoffs appear more defensive than transformative, pointing to the absence of immediate cost savings or a clearly defined AI-driven growth engine.

Industry-Wide Trend Accelerates

Pinterest’s move mirrors a broader trend across the technology sector, where companies are trimming headcount to fund rising AI development costs. Executives across the industry have acknowledged that while automation may eliminate some roles, new positions tied to AI systems and infrastructure are expected to emerge.

Recent months have seen similar workforce reductions across software, design, and cloud companies as firms attempt to balance profitability with heavy AI investment.

Product Push Continues

Pinterest has been expanding its AI-powered offerings, including a personalized shopping assistant and automated advertising tools designed to help brands manage campaigns more efficiently.

The company expects restructuring-related charges of between $35 million and $45 million and said the process will be completed by the end of its third fiscal quarter.

The layoffs come as the global tech sector continues to recalibrate after years of aggressive hiring, with job cuts remaining a persistent theme across major platforms.