Pinterest to cut 15% of workforce as it shifts spending towards AI

Pinterest will lay off nearly 15% of its workforce, cutting hundreds of jobs as the company accelerates its push into artificial intelligence and reshapes its cost base.

The San Francisco-based social media company disclosed the move in a regulatory filing on Tuesday, saying the cuts form part of a broader restructuring aimed at funding AI-focused “transformation initiatives”, according to the Associated Press.

Pinterest said the layoffs will be accompanied by a reduction in office space as it reallocates resources towards AI-powered products and revises its sales and go-to-market strategy. The restructuring is expected to be completed by the end of September and will result in pre-tax charges of between $35 million and $45 million.

The company employed about 5,200 people at the end of last year, meaning the cuts are likely to affect several hundred roles. Pinterest did not specify which functions or regions would be impacted.

The move underscores how artificial intelligence is reshaping workforce strategies across the technology sector. Pinterest said the job reductions are intended to support increased investment in AI-enabled capabilities, rather than as a response to near-term financial distress.

In recent months, the company has rolled out several AI-driven features, including enhancements to users’ digital boards and a new Pinterest Assistant, designed to provide personalised shopping recommendations. Management has said these tools are expected to improve user engagement and advertising performance over time.

The layoffs come as tech companies increasingly redirect spending towards automation and AI. Amazon last year said it would cut about 14,000 corporate roles as it ramped up AI investment, while trimming costs elsewhere, Reuters reported.

Investors reacted sharply to Pinterest’s announcement. The company’s shares fell more than 9% in intraday trading on Tuesday, reflecting concerns about growth visibility even as management emphasised longer-term efficiency gains.

Pinterest has positioned the restructuring as part of a strategic pivot rather than a retrenchment. The company said it is seeking to build a leaner organisation capable of scaling AI-led products while navigating a more cautious advertising market.

As AI adoption deepens across consumer internet platforms, Pinterest’s move highlights a growing tension for tech firms: investing aggressively in automation while managing the human cost of workforce reductions.