Pinterest plans to lay off 15% of its workforce to focus on investing in AI technology.

interest while facing competition from AI answer engines and a decrease in ad spending. In response to these challenges, Pinterest has announced plans to lay off around 700 employees, approximately 15% of its workforce, and reduce office space to focus on AI projects.

Pinterest’s recent executive changes include the appointment of Claudine Cheever as Chief Marketing Officer and Lee Brown as the Chief Business Officer. Brown emphasized the importance of utilizing AI to scale the business and enhance performance advertising on the platform. The company aims to leverage AI to improve its advertising business, which has faced obstacles due to the rise of AI answer engines and decreased ad spending.

The strategic decision to reduce headcount and office space, combined with the recruitment of experienced digital leaders, will allow Pinterest to concentrate on developing AI-driven products and capabilities. By reallocating resources to AI-focused roles and teams, Pinterest aims to accelerate the adoption and execution of AI technologies within the organization. The layoffs are projected to be completed by the end of September.

Pinterest’s challenge lies in retaining user engagement amidst emerging AI platforms while maintaining its identity as a positive online community. To address this, Pinterest has introduced various initiatives to enhance its advertising offerings in the AI era. These initiatives include the launch of a shoppable DIY lifestyle TV series, collaborations with brands like Walmart for shoppable recipe experiences, and the integration of “where-to-buy” links in image ads to showcase multiple retailer options for products. Additionally, Pinterest has introduced new visual search tools for women’s fashion to improve the user experience.

The company’s focus on AI projects and restructuring efforts underscore its commitment to adapting to evolving consumer preferences and technological advancements in the digital landscape. By investing in AI capabilities, Pinterest aims to revitalize its advertising business, drive revenue growth, and enhance user experience on the platform. The layoffs and organizational changes reflect Pinterest’s strategic shift towards harnessing the power of AI to drive innovation and competitiveness in the market.