- Pinterest has confirmed it will lay off around 15% of its workers (700+) by September
- AI hasn’t replaced human workers, but it’s being blamed for the cost cutting
- Quarterly revenue growth has been in a good place for a long time
Pinterest has revealed it will be reducing its headcount by around 15% as it looks to cut costs – even its office spaces are being questioned as an internal strategy shift towards AI tools comes into play.
Although the company has not confirmed the exact number of workers it expects to make redundant, current estimations claim 700-800 roles will be lost, based on previous headcount figures from 2024 and 2025.
Unsurprisingly, AI is being blamed for the job losses, but not quite in the way you may expect, as human jobs aren’t explicitly being replaced by AI bots.
Pinterest set to cut around 700+ jobs
Rather than blaming AI for reducing the number of staff it needs, Pinterest says it will be moving staff into AI-focused roles and teams, and prioritizing its own AI-powered tools. The third and final factor cited by Pinterest in a SEC filing was “accelerating the transformation of its sales and go-to-market approach.”
Last quarter, the company made a 17% year-over-year increase in revenue with CEO Bill Ready noting Pinterest’s focus on visual search, which allowed it to become an “AI-powered shopping assistant for 600 million consumers.”
A company spokesperson told The Verge that hiring AI-proficient talent will be a priority going forward. “The Company plans to reinvest in key development areas and strategic opportunities,” Pinterest added in the SEC filing.
Pinterest expects the workforce adjustments, set to be complete by the end of September 2026, to have cost between $35-45 million. Company share prices dropped around 9-10% following the news.
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