Pinterest to lay off 15% of its workforce as company shifts focus to artificial intelligence- Grow Mudra

Pinterest to lay off 15% of its workforce as company shifts focus to artificial intelligence

29 Jan , 2026 By : Debdeep Gupta

Pinterest is cutting jobs and says its growing focus on artificial intelligence is a major reason behind the move.

The image-sharing platform announced that it plans to lay off just under 15% of its workforce as it reshapes the company and shifts more money toward AI. The decision was disclosed in a regulatory filing on Tuesday, where Pinterest explained that it is changing how teams are structured and where resources are spent.

In simple terms, Pinterest is moving people and budgets away from some roles and toward AI-related work. The company said it is focusing more on AI-driven features and also changing how it sells ads and works with businesses. As a result, some jobs are being eliminated.

The layoffs are expected to affect hundreds of employees. By the end of last year, Pinterest had around 5,200 workers worldwide. Cutting close to 15% of its workforce means a large number of people will be impacted across different teams.

Pinterest is also planning to reduce its office space as part of these changes. Along with job cuts, the company wants to lower real estate costs while adjusting how employees work. Pinterest said it expects to finish the restructuring by the end of September. The company estimates it will spend between 35 million and 45 million dollars on severance, office closures, and other related costs.

Over the past year, Pinterest has been pushing AI more deeply into its products. In October, it rolled out AI-powered updates to user boards, making it easier for people to organize ideas and discover content. The company also introduced Pinterest Assistant, an AI tool that offers shopping suggestions to users. These updates show that Pinterest is betting heavily on AI to shape its future.

Pinterest is not alone in making job cuts while investing more in AI. Last year, Amazon announced plans to cut about 14,000 corporate jobs as it increased spending on artificial intelligence and cut costs in other areas.

Investors reacted quickly to the news. Pinterest shares fell more than 9% in midday trading on Tuesday, reflecting concerns about the layoffs and the uncertainty around the company’s shift toward AI.

For employees, the announcement adds to growing worries across the tech industry, where job losses continue even as companies talk about innovation and long-term growth.