Pinterest to cut up to 15% of staff to boost AI focus
By ForGeeks
Pinterest plans to reduce its workforce by up to 15%, CNBC reports. This move stands out, especially given the company’s strong financial results in recent quarters. The reason, however, is now familiar across the tech industry — a pivot towards artificial intelligence.
The company said it is “redistributing resources” to prioritize AI projects and is focusing on “AI-powered products and capabilities.” At the same time, Pinterest is downsizing its office space, indirectly signaling a push for automation and less reliance on traditional office infrastructure.
In a recent filing with regulators, Pinterest noted that the layoffs will be completed by the end of the third quarter, in September. As of April, the company employed about 4,500 people worldwide, meaning up to 675 jobs could be cut.
Beyond workforce cuts, Pinterest intends to revamp its sales and marketing strategies with a stronger emphasis on new AI initiatives. To that end, the company introduced an AI-driven tool for online shopping several months ago.
Back in November, Pinterest CEO Bill Ready highlighted that investments in AI and product development are already paying off. According to him, Pinterest has become a leader in visual search and effectively turned its platform into an AI shopping assistant used by about 600 million people.
However, this leadership comes with challenges. Users have increasingly complained about an influx of low-quality AI-generated content, forcing Pinterest to implement controls designed to reduce such material in users’ feeds.
Pinterest is far from alone on this path. According to one consulting firm, around 55,000 US layoffs last year were directly linked to the adoption of AI. Meanwhile, experts are raising concerns about a trend called AI-washing — where companies exaggerate the role of AI and use it as a convenient excuse for routine cost-cutting measures, creating an illusion of a technological breakthrough for investors.
