Pinterest Announces Global Restructuring Plan, Expected Layoffs Under 15%

Written by Emily J. Thompson, Senior Investment Analyst

PINS-9.61%

MSFT+2.19%

GLW+15.58%

Updated: 6h ago

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Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly.PUSH TOWARD AI ROLES:In a regulatory filing, Pinterestannounced the board-approved global restructuring plan that includes a reduction in force that is expected to affect less than 15% of the company's workforce as well as office space reductions. The company anticipates incurring total pre-tax restructuring charges of approximately $35M to $45M, which are expected to be primarily cash-related expenditures. The company intends to exclude the restructuring charges from its non-GAAP financial measures, including Adjusted EBITDA. The company said, "The Company is taking these actions to support its transformation initiatives, including but not limited to 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. Although the company is reducing its overall staffing levels with these actions in the near term, the company plans to reinvest in key development areas and strategic opportunities. The company expects to complete the Plan by the end of its third quarter ending September 30, 2026, subject to local law and consultation requirements."PRISM:Microsoft-backed OpenAI introduced Prism, a free, AI-native workspace for scientists to write and collaborate on research, powered by GPT-5.2. Prism offers unlimited projects and collaborators and is available today to anyone with a ChatGPT personal account, the ChatGPT maker said. Prism will be available soon to organizations using ChatGPT Business, Enterprise, and Education plans. "Over the past year, we've begun to see AI accelerate scientific work across domains," OpenAI said. "Advanced reasoning systems like GPT-5 are helping push the frontiers of mathematics, accelerating the analysis of human immune-cell experiments, and speeding up experimental iteration in molecular biology. We're still early, but it's clear that AI will play a meaningful role in how science advances. At the same time, much of the everyday work of research-drafting papers, revising arguments, managing equations and citations, and coordinating with collaborators -remains fragmented across disconnected tools. Researchers often move between editors, PDFs, LaTeX compilers, reference managers, and separate chat interfaces, losing context and interrupting focus. Prism is our first step toward addressing this fragmentation."INQUIRY:The European Commission announced that it has launched a new formal investigation against X under the Digital Services Act. In parallel, the Commission extended its ongoing investigation launched in December 2023 into X's compliance with its recommender systems risk management obligations. The new investigation will assess whether the company properly assessed and mitigated risks associated with the deployment of Grok's functionalities into X in the EU. This includes risks related to the dissemination of illegal content in the EU, such as manipulated sexually explicit images, including content that may amount to child sexual abuse material. The Commission will continue to gather evidence, for example by sending additional requests for information, conducting interviews or inspections, and may impose interim measures in the absence of meaningful adjustments to the X service. The opening of formal proceedings empowers the Commission to take further enforcement steps, such as adopting a non-compliance decision. The Commission is also empowered to accept any commitment made by X to remedy the matters subject to the proceeding. The opening of formal proceedings relieves Digital Services Coordinators, or any other competent authority of EU Member States, of their powers to supervise and enforce the DSA in relation to the suspected infringements.AI DATA CENTERS:CorningCEO Wendell WeeksCNBC in an exclusive interview that Metahas committed to paying Corning up to $6B through 2030 for fiber-optic cable in its AI data centers, reported Katie Tarasov. Corning is expanding the facility to accommodate growing demand from Meta and others like Nvidia, OpenAI, Google, Amazonand Microsoft as part of an extended AI industry buildout, the report noted.INTERACTIVE CLAUDE APPS:Anthropic said in a blog post that, starting Monday, Claude users can open and interact with tools in Claude. "Build and update project timelines in Asana," the post reads. "Draft, edit and send Slack messages in a formatted preview. Visualize ideas as diagrams in Figma-all without switching tabs. Claude already connects to your tools and takes actions on your behalf. Now those tools show up right in the conversation, so you can see what's happening and collaborate in real time." The new feature is available on web and desktop for Pro, Max, Team, and Enterprise plans.Meanwhile, Financial Times' Ivan Levingston and George Hammond reported that Anthropic is set to raise about $20B from venture capitalists and other investors, double the amount it had targeted in a sign of surging investor enthusiasm for the high-profile AI start-up. The fundraising deal, which is close to being finalized, would value the company at $350B, said people familiar with the matter. The upsized transaction underscores Anthropic's growing momentum as chief rival to the ChatGPT maker OpenAI. Anthropic had been in talks to raise about $10B from investors to finance its expansion plan. However, that amount has since doubled because of the high level of investor demand to back the company.

PINS

$23.41+Infinity%1D

Analyst Views on PINS

Wall Street analysts forecast PINS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PINS is 38.41 USD with a low forecast of 30.00 USD and a high forecast of 50.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

24 Analyst Rating

18 Buy

6 Hold

0 Sell

Strong Buy

Current: 25.900

Low

30.00

Averages

38.41

High

50.00

Current: 25.900

Low

30.00

Averages

38.41

High

50.00

UBS

Buy

downgrade

$48 -> $40

2026-01-20

Reason

UBS

Price Target

$48 -> $40

AI Analysis

2026-01-20

downgrade

Buy

Reason

UBS lowered the firm's price target on Pinterest to $40 from $48 and keeps a Buy rating on the shares. The Q4 earnings outlook for advertising-driven companies points to slimmer beats after a slow October tied to a government shutdown, followed by a rebound in November and December, the analyst tells investors in a research note. Among nine companies, five exceeded prior forecasts, two were in line, and two came in modestly below expectations, UBS says.

Wolfe Research

Shweta Khajuria

Outperform

downgrade

$36 -> $33

2026-01-05

Reason

Wolfe Research

Shweta Khajuria

Price Target

$36 -> $33

2026-01-05

downgrade

Outperform

Reason

Wolfe Research analyst Shweta Khajuria lowered the firm's price target on Pinterest to $33 from $36 and keeps an Outperform rating on the shares. 2026 could be another positive year for Internet stocks, though maybe not as much outperformance as the prior three years given current, elevated multiples for some of the firm's coverage, the analyst tells investors in a research note. The firm added that it sees opportunities for estimates upside driven by AI developments and product catalysts, a relatively healthy macro backdrop, successful capital allocation, and pockets of re-rating potential.

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Wedbush

Outperform -> Neutral

downgrade

$34 -> $30

2025-12-08

Reason

Wedbush

Price Target

$34 -> $30

2025-12-08

downgrade

Outperform -> Neutral

Reason

Wedbush earlier today downgraded Pinterest to Neutral from Outperform with a price target of $30, down from $34. The company reported "mixed" Q3 results and its outlook assumes a "less constructive range of outcomes" for the platform given macro uncertainty and tariff implications, the analyst tells investors in a research note. The firm thinks investors are also increasingly contemplating risks from rising consumer adoption of competing agentic commerce. It believes Pinterest in track to hit the lower end of its intermediate-term target and that the stock's valuation is more balanced at current levels. Wedbush sees limited visibility into catalysts that could meaningfully reaccelerate Pinterest's growth.

Morgan Stanley

Overweight

downgrade

$41 -> $32

2025-11-26

Reason

Morgan Stanley

Price Target

$41 -> $32

2025-11-26

downgrade

Overweight

Reason

Morgan Stanley lowered the firm's price target on Pinterest to $32 from $41 and keeps an Overweight rating on the shares. Revenue trends continue to come in lower than expected amid macro pressures and low advertiser diversity, notes the firm as it lowers near term estimates. However, the firm says catalysts seen into 2026, coupled with "a valuation reset," lead it to keep an Overweight rating on the shares.

About PINS

Pinterest, Inc. (Pinterest) offers visual search and discovery platform. The Company’s primary service, Pinterest, can be accessed through its mobile application or the Web. People use Pinterest to find ideas. As they browse Pinterest content, Pins, they fine-tune their tastes and find the idea. Users interact with the platform in multi-session journeys to find inspiration, curate their latest look, plan their next project and shop from brands. It has approximately 553 million monthly active users across the world. Content on Pinterest comes from a variety of sources, including retailers, brands, creators, publishers and users. It acquires that content via a range of methods, including product catalog uploads, direct publishing, and user curation. Content formats include images that allow the user to click into an idea to learn more, videos that provide the steps of an idea, and products that brands and merchants upload from catalogs.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.