Pinterest said on Tuesday that it plans to lay off less than 15% of its workforce to reduce office space and reallocate resources to AI initiatives. In a regulatory filingthe company noted that it will complete the layoffs by the end of September.
The filing states that Pinterest will “allocate resources to AI-focused roles and teams that drive AI adoption and execution” and “prioritize AI-powered products and capabilities.”
The company has 4,666 full-time employees by the end of 2024, meaning about 700 employees will be affected by the cuts.
The move comes as Pinterest, and every other tech company, has invested in AI. A few months ago, the company launched “Pinterest Assistant,” AI friendly users can be called upon to provide shopping advice and recommendations. It also began experiment with personal AI-powered space.
During Pinterest’s last earnings call, Pinterest CEO Bill Siap underlines the promise of open-source AI models to help companies reduce costs.
The company said it would record pre-tax restructuring charges of about $35 million to $45 million.