Pinterest to lay off up to 15% of staff because of AI
Pinterest is laying off up to 15% of its workforce to prioritize artificial intelligence (AI) capabilities.
Image by Thiago Prudencio via Getty Images
Pinterest is laying off up to 15% of its workforce to prioritize artificial intelligence (AI) capabilities.
The social media company, which has over 4,500 employees globally, is also reducing office space, according to Pinterest’s securities filing.
The company says it is taking these measures to prioritize “AI‑powered products and capabilities” and reallocate “resources to AI-focused roles and teams that drive AI adoption and execution.”
Pinterest expects to complete layoffs by the end of its third quarter, ending September 30th.
Pinterest has joined the ranks of large technological companies like Amazon and Microsoft, which cite AI as a reason for massive reductions in headcount.
However, a recent study from Oxford Economics suggests that companies don’t rush to actually replace employees with AI. Instead, they use AI adoption to mask traditional business failures, such as past overhiring or weak consumer demand.
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