Pinterest on plans to cut 15% jobs and reduce office space: We are reallocating resources to…

Pinterest has announced plans to lay off less than 15% of its workforce and reduce office space. This move comes as the company looks to shift its resources toward artificial intelligence (AI) development and implementation. In a securities filing, Pinterest said it expects the cuts to be complete by the end of its third quarter in late September. Pinterest shares slipped about 3% in premarket trading following the announcement, CNBC reported.The social media company said it's “reallocating resources” to AI-focused teams and prioritising “AI-powered products and capabilities”. Pinterest also indicated it's reshaping its sales and marketing strategy as part of the reorganisation. According to a recent proxy filing, Pinterest had more than 4,500 employees worldwide as of April 2025. The company said it expects to record pre-tax restructuring charges of about $35 million to $45 million.In its SEC filing about restructuring, Wanji Walcott, the company’s chief legal and business affairs officer and corporate secretary, wrote, “On January 26, 2026, the Company announced the board-approved global restructuring plan (the “Plan”) that includes a reduction in force that is expected to affect less than 15% of the Company’s workforce as well as office space reductions. The Company anticipates incurring total pre-tax restructuring charges of approximately $35 million to $45 million, which are expected to be primarily cash-related expenditures. The Company intends to exclude the restructuring charges from its non-GAAP financial measures, including Adjusted EBITDA.The Company is taking these actions to support its transformation initiatives, including but not limited to (i) reallocating resources to AI-focused roles and teams that drive AI adoption and execution, (ii) prioritising AI‑powered products and capabilities, and (iii) accelerating the transformation of its sales and go-to-market approach. Although the Company is reducing its overall staffing levels with these actions in the near term, the Company plans to reinvest in key development areas and strategic opportunities. The Company expects to complete the Plan by the end of its third quarter ending September 30, 2026, subject to local law and consultation requirements.”Pinterest has worked to integrate AI throughout its platform to show more personalised and relevant content to users. In October 2025, the company released a "Pinterest Assistant" shopping tool.At the same time, Pinterest has rolled out more automated advertising tools for marketers as it faces growing competition from TikTok, Meta's Facebook and Instagram.