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Beyond the coming layoffs, Pinterest said it will reduce office
space. The company expects to complete its restructuring plan by
the end of September, incurring pretax charges of $35 million to
$45 million.
Pinterest's job cuts are expected to impact hundreds of workers.
As of the end of last year, Pinterest had a total headcount of
about 5,200 employees, the company confirmed to The Associated
Press.
Like other tech and social media companies, Pinterest has
accelerated its integration of AI recently, particularly in
consumer-facing offerings. In October, the company introduced
AI-powered updates to users' in-platform “boards” and unveiled
Pinterest Assistant, which is also powered by AI and gives users
shopping recommendations.
Pinterest isn't the first company to turn to job cuts while
pivoting spending to AI. Last fall, Amazon, for example, said it
would cut about 14,000 corporate jobs (close to 4% of its
workforce) as it ramped up AI investments while trimming costs
elsewhere.
Shares of Pinterest fell more than 9% as of midday trading
Tuesday.
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