Pinterest will lay off under 15% of employees and will reduce office spaces, reallocating resources to artificial intelligence teams.

Pinterest has announced that it will lay off less than 15% of its workforce and reduce office spaces, in the context of adopting artificial intelligence (AI). The restructuring will be completed by the end of the third quarter, and the company's shares have dropped by over 9%. Pinterest is reallocating its resources towards AI-focused teams, prioritizing the development of products and capabilities based on this technology. The company expects restructuring costs between 35 and 45 million dollars. In April last year, Pinterest had over 4,500 employees globally. Additionally, the company has launched automated shopping and advertising tools to remain competitive against platforms like TikTok and Meta. CEO Bill Ready highlighted the progress in visual search and AI-based shopping assistance. However, there are concerns that some companies might use AI as a justification for layoffs.