Pinterest to cut 15% of staff to fund AI shift

Pinterest is pivoting hard to artificial intelligence, and it is funding the move by cutting its workforce. The company confirmed Tuesday it will eliminate less than 15% of its global staff, affecting hundreds of employees, to reallocate capital directly into AI-focused roles and infrastructure.

The decision is part of a broader "global restructuring plan" approved by the board on Monday. In a regulatory filing, Pinterest disclosed it expects to incur $35 million to $45 million in pre-tax charges to facilitate the shift. The company’s stated goal is not just efficiency, but a fundamental reorganization to "prioritize AI-powered products and capabilities."

The "Reallocation" Strategy

The layoffs will be completed by the end of the third quarter of 2026. While the company did not specify which departments would face the deepest cuts, the SEC filing explicitly frames the reduction as a resource swap rather than a simple cost-saving measure.

According to the filing, the company is taking these actions to support "reallocating resources to AI-focused roles and teams that drive AI adoption". This suggests a strategy of trading generalist headcount for specialized machine learning talent and high-cost compute power.

Investors reacted cautiously to the disruption. Pinterest shares slid roughly 3% in premarket trading following the announcement, joining a broader sector trend where "AI pivots" often trigger initial volatility before long-term gains are realized.

The AI Imperative

The restructuring aligns with CEO Bill Ready's aggressive push to modernize the platform’s backend. Over the past year, Pinterest has introduced features like the "Pinterest Assistant" to automate discovery, betting that generative AI can better predict user intent than traditional search tools.

"AI is the heart of the Pinterest experience. It works continuously in the background to understand our users' evolving tastes and preferences." - Bill Ready, CEO (via Inc)

The company is now formalizing this focus by reshaping its workforce to match. The filing notes that in addition to the layoffs, Pinterest will "accelerate the transformation of its sales and go-to-market" strategies, a signal that the automation of its ad business is likely a key driver of the reorganization.

A Sector-Wide Reset

Pinterest’s move mirrors a specific type of restructuring becoming common in 2026: the "AI swap." Companies like Dropbox and Intuit have executed similar pivots, reducing support and legacy roles to free up budgets for engineering talent.

For Pinterest, the $45 million charge is the price of admission to the next phase of the digital ad wars. As competitors like Meta and TikTok deploy increasingly sophisticated algorithmic tools, Pinterest is clearing the decks to ensure it has the technical firepower to keep up.