SAN FRANCISCO, February 27, 2024 – Pinterest is bracing for workforce reductions impacting less than 15 percent of its employees as the company shifts its focus toward artificial intelligence initiatives. The digital pinboard platform announced the restructuring Tuesday, signaling a significant pivot in strategy.
AI Drives Restructuring at Pinterest
The company is reallocating resources to bolster AI-driven product development and execution.
- Pinterest plans to reduce its workforce by less than 15 percent.
- The restructuring aims to prioritize AI-focused roles and teams.
- Restructuring charges are estimated between $35 million and $45 million.
- The plan is expected to be completed by the end of September 2026.
Pinterest is strategically reallocating resources to AI-focused roles and teams that will drive the adoption and execution of artificial intelligence, according to a company filing. This move comes as Pinterest prioritizes the development of AI-powered products and capabilities. The company reported a total employee headcount of 5,205 as of its prior third quarter.
The restructuring will also involve reductions in office space. Total charges associated with the plan are projected to be approximately $35 million to $45 million. While the company is reducing overall staffing levels, Pinterest indicated plans to reinvest in key development areas and strategic opportunities at a later stage.
This news arrives as Amazon prepares its second round of job cuts, potentially affecting a total of 30,000 employees. Amazon initially announced cuts impacting 14,000 workers in October, attributing the decision to the need for a leaner organizational structure to accelerate innovation and customer service. “We’re convinced that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business,” Amazon stated at the time.
What impact will AI have on the future of work? The integration of artificial intelligence is prompting companies to reassess their workforce needs and prioritize roles aligned with emerging technologies.
Financial markets reacted to the news Tuesday, with Pinterest shares down 3.6 percent in premarket trading. Over the past three months, the stock has declined 22 percent, and it has fallen 21 percent over the past year. Pinterest first went public in 2019.
