Pinterest to cut nearly 15% of workforce in AI push

(Sharecast News) - Pinterest said on Tuesday that it was planning to lay off just under 15% of its workforce and reduce office space as it looks to reallocate resources to artificial intelligence. The company said in a securities filing that it was 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".

Pinterest said that while it is cutting overall staffing levels, it plans to reinvest in key development areas and strategic opportunities.

The plan is expected to complete by the end of its third quarter ending 30 September, subject to local law and consultation requirements.

The company expects to incur total pre-tax restructuring charges of about $35m to $45m, which will be primarily cash-related expenditures. These charges will be excluded from its non-GAAP financial measures, including adjusted EBITDA.

At 1410 GMT, the shares were down 3.9% in pre-market trade at $24.90.