Pinterest Inc (NYSE:PINS) shares fell almost 10% after the company said that it will lay off less than 15% of its workforce and reduce office space as part of a broader restructuring aimed at accelerating its shift toward artificial intelligence.
The company disclosed the plan in a securities filing, saying the changes are expected to be completed by the end of its third quarter, which ends on September 30.
The restructuring is expected to affect fewer than 700 jobs and includes cuts to office space. The company had 4,500 employees as of last April.
Pinterest said the plan is intended to support its transformation initiatives, including reallocating resources to AI-focused roles and teams, prioritizing AI-powered products and capabilities, and accelerating a revamp of its sales and go-to-market approach.
While the company said it will reduce staffing levels in the near term, it also said it plans to reinvest in key development areas and strategic opportunities.
The company expects to incur total pre-tax restructuring charges of approximately $35 million to $45 million, primarily cash-related expenditures, and said it intends to exclude those charges from its non-GAAP financial measures, including adjusted EBITDA.