The layoffs will affect about 700 workers, The Wall Street Journal reported Tuesday.
Pinterest said in the filing that the move is part of a restructuring plan that supports its transformation initiatives. The plan involves moving resources to AI-focused roles and teams and “prioritizing AI-powered products and capabilities.”
“Although the company is reducing its overall staffing levels with these actions in the near term, the company plans to reinvest in key development areas and strategic opportunities,” the filing said.
Pinterest expects to complete the plan, which also involves scaling back its office space, by the end of the third quarter, per the filing.
The company has been increasing its focus on AI for some time. On an earnings call in November, management said the platform has shifted from a digital mood board into what CEO Bill Ready called an “AI-powered visual-first shopping assistant.”
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The company said at the time that AI now underpins almost every part of its platform, from search and discovery to shopping recommendations, along with the then-new conversational Pinterest Assistant.
Pinterest Assistant is designed to help users find products and ideas that match their tastes, expanding the platform’s long-standing focus on inspiration into one centered on action. The assistant is aimed at making Pinterest “a more actionable destination,” combining search, personalization and shopping within one experience.
At the same time, Pinterest also introduced AI-powered upgrades to its boards that produce tailored recommendations based on each user’s activity and saved Pins.
Pinterest’s job cuts are the third in a series of layoffs at high-profile tech companies so far this year. Last week saw reports that Amazon was preparing to cut 14,000 corporate workers, part of its effort to eliminate 30,000 corporate jobs. The latest round of cuts was reportedly concentrated on four areas, including Amazon Web Services, retail, Prime Video, and People Experience and Technology, the company’s human resources division.
Earlier this month, it was reported that Meta plans to eliminate 10% of the jobs in its Reality Labs unit as it focuses less on virtual reality products and more on AI wearables.
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