Pinterest said Tuesday it plans to lay off less than 15% of its workforce and reduce office space as it accelerates its adoption of artificial intelligence.
In a securities filing, the company said it expects the job cuts to be completed by the end of its third quarter in late September. Pinterest shares fell about 3% in premarket trading.
Pinterest said it is “reallocating resources” toward AI-focused teams and prioritizing “AI-powered products and capabilities.” The company also said it is reshaping its sales and marketing strategy.
The platform has been integrating artificial intelligence across its services to deliver more personalized and relevant content to users. In October, Pinterest introduced a “Pinterest Assistant” shopping tool.
The company has also rolled out more automated advertising tools for marketers as it faces growing competition from platforms such as TikTok and Meta’s Facebook and Instagram.
Pinterest reported having more than 4,500 employees worldwide as of last April, according to its most recent proxy filing.
The company said it expects to record pretax restructuring charges of about $35 million to $45 million.
