Pinterest plans to cut less than 15 percent of its workforce – roughly 700 jobs – as it reshapes the company and puts more money into artificial intelligence.
In a filing Tuesday, the San Francisco-based company said the layoffs are part of a broader plan to shift resources toward AI-focused jobs, build more AI-powered products, and change how it sells and markets its services.
Pinterest also said it will shrink its office space. The company expects to finish the restructuring by the end of September and take a one-time charge of $35 million to $45 million.
Cuts are expected to affect hundreds of workers. Pinterest had about 5,200 employees at the end of last year.
The company has been rolling out more AI features for users, including tools that improve personal boards and a computerized assistant that offers shopping recommendations.
Pinterest was founded in 2009 by internet entrepreneurs Ben Silbermann, Paul Sciarra, and Evan Sharp.
It was originally called Tote and served as a virtual replacement for paper catalogs.
While Tote failed because the online payment process was not smooth enough, a trend emerged of people using the app to share collections and items with others.
The layoffs are part of a broader plan to shift resources toward AI-focused jobs
Pinterest had about 5,200 employees at the end of last year
Banners for Pinterest, displayed to mark the fifth anniversary of the company’s listing, hang on the front of the New York Stock Exchange
Bill Ready, online commerce expert and CEO of Pinterest
This inspired the founders to build Pinterest – which allows users to create and curate collections that can be sent to others.
The app gained popularity as people used it as a collaborative space online for planning weddings, hosting parties, re-decorating rooms, and putting together outfits.
After a decade of success, Pinterest announced that co-founder, CEO and president, Ben Silbermann would transition to the newly created role of executive chairman, and online commerce expert Bill Ready would become CEO.
Pinterest follows a wider tech trend. Other companies, like Amazon, have also cut jobs while increasing spending on AI.
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Dying social media app replaces 15% of workers with AI in devastating mass layoffs