Pinterest Cuts 15% Workforce to Focus on AI Transformation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: seekingalpha
- Layoff Plan: Pinterest plans to reduce its workforce by less than 15%, reallocating resources to AI-focused roles, which is expected to save the company approximately $175 million annually, supporting its transformation strategy.
- Transformation Goals: The company stated in an SEC filing that the layoffs will accelerate its sales and go-to-market transformation, prioritizing the development of AI-powered products and capabilities to enhance market competitiveness.
- Gemini Platform Shutdown: Gemini Space Station announced it will shut down its Nifty Gateway NFT platform on February 23, 2025, aiming to focus on building a one-stop super app, while still supporting NFTs through the Gemini Wallet.
- AI Impact Concerns: Anthropic CEO Dario Amodei expressed concerns about the potential disruption AI may cause to the job market, suggesting that its effects will be broader and faster than past technologies, potentially leading to greater labor market shocks.
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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: 22.560
Low
30.00
Averages
38.41
High
50.00
Current: 22.560
Low
30.00
Averages
38.41
High
50.00
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.
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