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Pinterest said Tuesday it plans to lay off less than 15% of its workforce and reduce office space as the company adopts artificial intelligence.
In a securities depositoryPinterest said it expects the cuts to be completed by the end of its third quarter at the end of September. Shares of Pinterest fell about 3% premarket.
The social media company said it was “reallocating resources” to AI-focused teams and prioritizing “AI-enabled products and capabilities.” It said it was also rethinking its sales and marketing strategy.
Read more CNBC tech newsThe company said it expects to record pre-tax restructuring charges of approximately $35 million to $45 million.
Pinterest had more than 4,500 employees worldwide as of April, according to its latest report. proxy filing.
Pinterest has sought to inject AI throughout its platform to display more personalized and relevant content to users. The company published a “Pinterest Assistant” purchasing tool.
At the same time, Pinterest has rolled out more automated advertising tools for marketers facing increasing competition from TikTok, MetaIt’s Facebook and Instagram.
“Our investments in AI and product innovation are paying off,” said Bill Ready, CEO of Pinterest. said in November. “We have become a leader in visual search and transformed our platform into an AI-powered shopping assistant for 600 million customers.”
Pinterest isn’t the only company downsizing as it invests in AI. AI has been cited It’s the reason for nearly 55,000 layoffs in the United States last year, according to consulting firm Challenger, Gray & Christmas.
Some experts question whether technology is the real source of job cuts, saying some companies could be “AI-wash”, or blame layoffs on new technology to hide cost-cutting efforts or other problems with their businesses.
