NEW YORK (AP) — Pinterest plans to lay off under 15% of its workforce, as part of broader restructuring that arrives as the image-sharing platform pivots more of its money to artificial ininformigence.
In a Tuesday securities filing, San Francisco-based Pinterest declared it was building these cuts to support “transformation initiatives” — which include reallocating the company’s resources to AI-focutilized roles and prioritizing AI-powered products. It declared it was also working to reshape its “sales and go-to-market approach.”
Beyond the coming layoffs, Pinterest declared it will reduce office space. The company expects to complete its restructuring plan by the conclude of September, incurring pretax charges of $35 million to $45 million.
Pinterest’s job cuts are expected to impact hundreds of workers. As of the conclude of last year, Pinterest had a total headcount of about 5,200 employees, the company confirmed to The Associated Press.
Like other tech and social media companies, Pinterest has accelerated its integration of AI recently, particularly in consumer-facing offerings. In October, the company introduced AI-powered updates to utilizers’ in-platform “boards” and unveiled Pinterest Assistant, which is also powered by AI and gives utilizers shopping recommconcludeations.
Pinterest isn’t the first company to turn to job cuts while pivoting spconcludeing to AI. Last fall, Amazon, for example, declared it would cut about 14,000 corporate jobs (close to 4% of its workforce) as it ramped up AI investments while trimming costs elsewhere.
Shares of Pinterest fell more than 9% as of midday trading Tuesday.
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