Pinterest (PINS) Stock: Company Cuts Up to 15% of Workforce for AI Pivot

TLDR

• Pinterest is laying off less than 15% of employees to prioritize AI investments
• The cuts affect hundreds of workers from a total workforce of 4,666
• Restructuring charges will range from $35 million to $45 million
• Shares fell 8% on Tuesday after the announcement
• Office space reductions are also part of the restructuring plan

Pinterest disclosed Tuesday it will reduce headcount by less than 15%. The move aims to accelerate AI product development.

Pinterest, Inc., PINS

The social media company had 4,666 full-time employees as of late 2024. Several hundred workers will be affected by the cuts.

Shares dropped 8% following the regulatory filing. The stock traded lower throughout Tuesday’s session.

Pinterest is also trimming its real estate holdings. Office space cuts accompany the workforce reduction.

The company plans to funnel resources into AI-focused positions. Teams working on artificial intelligence will expand despite overall headcount declines.

Pinterest has ramped up AI spending over the past year. The technology powers automated advertising campaigns on the platform.

Competitive Pressure Drives Changes

The restructuring targets sales and marketing operations too. Pinterest is reshaping how it approaches both functions.

Competition from TikTok and Meta’s properties has intensified. Facebook and Instagram continue pulling advertising revenue from Pinterest.

CEO Bill Ready touted AI progress during November earnings. He positioned Pinterest as an AI-powered shopping tool for 600 million users.

The company launched Pinterest Assistant in October. The AI shopping feature helps users find relevant products.

Ready called Pinterest a visual search leader. The CEO credited AI investments for the platform’s capabilities.

Financial Impact and Timeline

Restructuring expenses will hit between $35 million and $45 million. These pretax charges cover the workforce changes.

Pinterest didn’t specify cost savings from the cuts. The filing emphasized near-term expenses over future benefits.

The layoffs should conclude by September’s end. That deadline marks the close of Pinterest’s third quarter.

Despite reducing overall staff, Pinterest will hire in select areas. The company mentioned reinvestment in development and strategic initiatives.

Tech sector layoffs increasingly mention AI as justification. Consulting firm Challenger, Gray & Christmas tracked nearly 55,000 AI-related U.S. job cuts in 2025.

Industry experts debate whether AI truly drives these decisions. Some suggest companies use “AI-washing” to justify cost reductions.

Pinterest appeared in Barron’s stock picks last June. The publication recommended shares months before the restructuring.

The platform continues launching automated tools for advertisers. New features target marketers seeking efficiency.

Premarket trading showed shares at $25.01 before the market opened. The price reflected a 3.4% decline from Monday’s close.

Pinterest joins other tech companies restructuring around AI. The trend reflects shifting priorities across the industry.

The company stated it will maintain focus on key opportunities. Strategic investments continue despite the headcount reduction.