Pinterest reveals major job cuts as it shift focus to AI tools (www.techradar.com)

Pinterest has announced a significant reduction in its workforce, laying off around 15% of its employees, which translates to approximately 700-800 positions, as part of a strategic shift to focus on AI-driven tools. While the company has seen steady quarterly revenue growth, its move is rooted in an effort to cut costs and pivot towards AI technologies, including visual search capabilities that position Pinterest as an "AI-powered shopping assistant" for its 600 million users. The layoffs are designed not to eliminate human roles but to transition current employees into positions that prioritize the development and implementation of AI. This decision underscores a broader trend in the tech industry, where companies are increasingly prioritizing AI proficiency among their workforce. Pinterest plans to reinvest resources into AI-focused initiatives and hire talent with expertise in the area, as indicated by CEO Bill Ready's remarks. The anticipated impact of these adjustments is expected to cost between $35-45 million, and despite a recent 17% year-over-year revenue growth, the announcement led to a notable dip in the company's share prices by around 9-10%. This shift signals a significant transformation in Pinterest's operational strategy, aligning with the growing importance of AI in enhancing user engagement and commercial effectiveness.