Pinterest shares plunge 10% as move to cut hundreds of jobs shocks investors | Latest Tech News
Pinterest will trim less than 15% of its workforce, the social media platform said Tuesday, as it plans to reallocate assets to its artificial intelligence-focused roles and strategy.
Shares of the company, however, tumbled almost 10% after its AI pitch failed to ignite investor enthusiasm, underscoring heightened competitors from TikTok and Meta-owned Facebook and Instagram for advert market share.
“Without clear cost savings or a concrete path to AI-driven revenue growth, these cuts look more defensive than strategic,” said Emarketer analyst Jeremy Goldman.
Pinterest’s AI pitch failed to ignite investor enthusiasm, underscoring heightened competitors from TikTok and Meta-owned Facebook and Instagram for advert market share. AP
Pinterest had 5,205 full-time staff as of September last 12 months.
The job cut would translate to less than 780 positions.
The company also said it plans to close smaller workplace areas associated to its acquisitions.
Top executives at the World Economic Forum’s annual assembly earlier this month had said while jobs would disappear, new ones would spring up, with two telling GWN that AI can be used as an excuse by firms that have been planning layoffs anyway.
Last week, design software program maker Autodesk also announced a 7% job cut to redirect investments to its AI efforts.
“Many companies are having to show investors that their substantial spend on AI is not only worth it but also that they are making cuts elsewhere in order to fund it,” said Danni Hewson, head of financial analysis at AJ Bell.
“Without clear cost savings or a concrete path to AI-driven revenue growth, these cuts look more defensive than strategic,” said Emarketer analyst Jeremy Goldman. REUTERS
Pinterest has rolled out Pinterest Assistant purchasing software for customized product suggestions and the Performance+ advert suite for automating campaigns.
The company said it expects pre-tax restructuring fees of $35 million to $45 million and that it might full the restructuring plan by the end of its third quarter.
Layoffs.fyi, a web site monitoring tech job cuts, estimated that more than 123,000 staff have been laid off from 269 firms in 2025.
Shares closed at $23.41, down 9.6%
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