By Connor Hart

Pinterest said it would cut up to about 15% of its workforce, or roughly 700 jobs, as part of a restructuring aimed at pivoting resources toward higher-growth areas such as artificial intelligence.

The social-media platform on Tuesday said the restructuring will help support its transformation initiatives, including reallocating resources to AI-focused roles and teams, prioritizing AI‑powered products, and accelerating the revamp of its sales and go-to-market approach.

Pinterest makes money through advertising on its platform, and the company has been hurt by a recent pullback in spending among larger companies. Advertising pricing declined 24% in the third quarter as U.S. retailers navigated "tariff-related margin pressure," Chief Financial Officer Julia Donnelly said in November.

Shares, which were recently trading 1% lower in premarket trading, have lost roughly 23% of their value over the past year.

The weakness in ad pricing has prompted the company to turn focus toward AI, as pressure on advertising spending is expected to continue weighing on revenue in the near term. Pinterest is aiming to boost revenue with long-term investment in AI, focused on helping users find and purchase products in the images they pin.

In addition to job cuts, Pinterest said it will reduce office space in its restructuring. The company forecast after-tax charges of up to $45 million tied to the initiatives, most of which are expected to be cash-related expenditures.

Pinterest had 4,666 full-time employees as of Dec. 31, 2024, according to the latest headcount available in filings with the Securities and Exchange Commission.

The restructuring is projected to be largely complete by the end of September, Pinterest said.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

January 27, 2026 08:08 ET (13:08 GMT)

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