Pinterest cuts staff and office rental costs — all for the sake of AI
Pinterest plans to lay off 15% of its staff and reduce its office space to reallocate resources to artificial intelligence.
Pinterest plans to lay off 15% of its staff and reduce its office space to reallocate resources to artificial intelligence.
According to Pinterest, the company had 4,666 full-time employees as of the end of 2024, meaning the layoffs will affect about 700 people. The layoffs are expected to be completed by September 30, 2026, The Verge reports .
The company notes that these changes are being implemented to support three "transformational initiatives," two of which are directly related to artificial intelligence:
- reallocation of resources in favor of AI-focused positions and teams that ensure the implementation and implementation of artificial intelligence technologies.=;
- prioritizing AI-powered products and capabilities;
- accelerating the transformation of sales methods and go-to-market strategies.
As a result of these changes, Pinterest expects to incur pre-tax restructuring charges of approximately $35-45 million.
Pinterest is rolling out AI across its platform. In October, the company launched Pinterest Assistant to help people find clothes, furniture, and more on its app. The following month, Pinterest CEO Bill Ready said that “investments in AI and product innovation are paying off,” and that the platform has effectively become “an AI-powered shopping assistant for 600 million consumers.”
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