Pinterest plans to lay off up to 15% of its employees, approximately 700 positions, and reduce office space in order to “reallocate resources” toward AI projects, according to an SEC filing.
The news comes amid a recent reshuffle of Pinterest’s C-suite: Former Amazon exec Claudine Cheever was brought in to fill the Chief Marketing Officer role, after previous CMO Andrea Mallard left to lead marketing at Microsoft AI; and former DoorDash and Spotify executive Lee Brown was hired earlier this month to serve as the company’s first Chief Business Officer.
“I’ll be working with [CEO] Bill Ready and the team to scale its growing global business and accelerate its evolution as an AI-powered performance advertising platform,” said Brown in a LinkedIn post. “Why Pinterest, and why now? It stands out as a place where user taste meets real intent, powered by advances in AI and performance advertising at scale.”
Will AI Rescue Pinterest’s Advertising Business?
Pinterest’s advertising efforts have stumbled in recent months, as AI answer engines stole consumer attention and margin pressure from tariffs caused a pullback in ad spending, The Information reported.
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The reduction in headcount, along with the addition of new digitally adept leaders, will enable Pinterest to prioritize “AI‑powered products and capabilities, and accelerate the transformation of its sales and go-to-market approach,” according to the filing. Pinterest also said it intends to reallocate the resources freed up by the layoffs toward “AI-focused roles and teams that drive AI adoption and execution.” The layoffs are expected to be completed by the end of September.
Boosting Ad Revenue While Keeping it Positive
The platform has a tight needle to thread as it works to keep consumers’ attention despite the allure of flashy new AI platforms, while maintaining what it has always held as its differentiator: being a “positive corner of the internet.”
But the company already has been working toward this goal with a range of initiatives aimed at beefing up its advertising options for the AI era, including:
- Plans for a shoppable DIY lifestyle TV series that will debut in March on Roku with brand partners that include Wayfair and Michaels;
- Piloting a shoppable recipe experience with Walmart;
- The introduction of “where-to-buy” links in its standard image ads, allowing CPG advertisers to show multiple in-stock retailer options for a single product; and
- The addition of new visual search tools for women’s fashion.
