Pinterest announced it is slashing its workforce by nearly 15% as the social media company pivots resources toward artificial intelligence, the latest tech giant to change its operations around AI capabilities while reducing headcount and triggering concerns about massive job displacement.

The San Francisco-based firm disclosed the board-approved restructuring plan in a Form 8-K filing with the U.S. Securities and Exchange Commission on Tuesday, announcing it will eliminate positions affecting fewer than 15% of employees, along with office space reductions.

Pinterest said it is “reallocating resources to AI-focused roles and teams that drive AI adoption and execution,” “prioritizing AI-powered products and capabilities,” and “accelerating the transformation of its sales and go-to-market approach.”

The company is the latest firm to realign its workforce around AI, amid ongoing uncertainty over the technology’s long-term impact on employment.

The restructuring is expected to be completed by the end of its third fiscal quarter, subject to local law and consultation requirements.

The move will trigger restructuring charges between $35 million and $45 million, primarily in cash-related expenditures.

Despite reducing overall staffing, the company plans to reinvest in "key development areas and strategic opportunities," according to the filing.



AI displacement warnings mount

The announcement arrives amid mounting warnings from AI industry leaders about rapid workforce displacement.

Earlier this month at the World Economic Forum in Davos, Anthropic CEO Dario Amodei reaffirmed predictions that human-level AI could arrive by 2026 or 2027, while estimating that up to half of entry-level professional roles could vanish within five years.

"We might be six to twelve months away from when the model is doing most, maybe all, of what [software engineers] do end to end," he said.

Robinhood CEO Vlad Tenev noted during a recent TED Talk that AI could drive a "Cambrian explosion" of innovation and job creation, predicting a "job singularity" with new job families across every field.

"Where the internet gave people worldwide reach, AI gives them a world-class staff," Tenev said.

Tech restructuring

Pinterest joins Meta Platforms, which cut about 1,000 jobs from its Reality Labs division this month as it shifts resources from metaverse development toward AI wearables and mobile features.

“6.1% of jobs will be lost in the US by 2030 due to AI and automation,” J.P. Gownder, VP, Principal Analyst, at global research and advisory firm Forrester, recently predicted.

“Even if we’re not heading for an imminent AI job apocalypse,” Gownder added, organizations’ use of AI will alter work and customer service, but “in the next five years, the future of work will remain largely human,” as AI takes over tasks without fully replacing jobs.

Meanwhile, AI's role in hiring itself is facing legal scrutiny. Last week, two job seekers filed a federal class-action lawsuit against AI hiring platform Eightfold alleging the company uses hidden artificial intelligence to secretly score applicants without their knowledge or consent, in violation of consumer protection laws.

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