Shares of Pinterest (PINS) fell 9.5% intraday after the company announced a board-approved global restructuring plan that will cut less than 15% of its workforce and reduce office space.
The San Francisco-based social media company expects to incur between $35 million and $45 million in pre-tax restructuring costs, primarily cash-related expenses, according to a new SEC filing.
Pinterest said the layoffs were part of a broader AI-driven transformation strategy. While reducing its overall workforce in the short term, the company plans to reinvest in key development areas and strategic opportunities.
Pinterest intends to reallocate resources to AI-focused roles, prioritize AI-enabled products and capabilities, and accelerate changes in its sales and go-to-market approach.
The company plans to complete its restructuring by the end of its third quarter, subject to local law and consultation requirements.
