Pinterest to reduce office space
Company says it will redirect resources to AI teams
Job cuts expected to complete by September 30
Shares down nearly 10%
Adds analyst comment in paragraph 3
By Jaspreet Singh
Jan 27 (Reuters) - Pinterest PINS.N will trim less than 15% of its workforce, the social media platform said on Tuesday, as it plans to reallocate resources to its artificial intelligence-focused roles and strategy.
Shares of the company, however, tumbled nearly 10% after its AI pitch failed to ignite investor enthusiasm, underscoring heightened competition from TikTok and Meta-owned META.O Facebook and Instagram for ad market share.
"Without clear cost savings or a concrete path to AI-driven revenue growth, these cuts look more defensive than strategic," said Emarketer analyst Jeremy Goldman.
Pinterest had 5,205 full-time employees as of September last year. The job cut would translate to less than 780 positions.
The company also said it plans to close smaller office spaces related to its acquisitions.
Top executives at the World Economic Forum's annual meeting earlier this month had said while jobs would disappear, new ones would spring up, with two telling Reuters that AI would be used as an excuse by companies which were planning layoffs anyway.
Last week, design software maker Autodesk also announced a 7% job cut to redirect investments to its AI efforts.
"Many companies are having to show investors that their substantial spend on AI is not only worth it but also that they are making cuts elsewhere in order to fund it," said Danni Hewson, head of financial analysis at AJ Bell.
Pinterest has rolled out Pinterest Assistant shopping tool for personalized product recommendations and the Performance+ ad suite for automating campaigns.
The company said it expects pre-tax restructuring charges of $35 million to $45 million and that it would complete the restructuring plan by the end of its third quarter.
Layoffs.fyi, a website tracking tech job cuts, estimated that more than 123,000 employees were laid off from 269 companies in 2025.
(Reporting by Jaspreet Singh in Bengaluru, additional reporting by Anhata Rooprai in Bengaluru; Editing by Shilpi Majumdar)
((Jaspreet.Singh@thomsonreuters.com; on X @i_jass;))