Pinterest is conducting a massive round of layoffs to prioritize 'AI-powered products and capabilities'

Pinterest is planning on laying off up to 15 percent of its workforce, according to a report by CNBC. The company has been posting stellar earnings reports these past few quarters, so why punish employees? You already know the answer. It's AI.

The company said it's "reallocating resources" to AI projects and prioritizing "AI-powered products and capabilities." It's also cutting down on office space, presumably because AI algorithms don't require cubicles and the occasional low-grade snack.

Pinterest noted in a recent security filing that it expects these cuts to the workforce will be complete by the end of the third quarter in September. The company had 4,500 global employees as of April, so the layoffs should impact up to 675 people.

It will also be reshaping its sales and marketing strategies, likely to highlight new AI initiatives. To that end, Pinterest introduced an AI-powered shopping tool a few months back.

"Our investments in AI and product innovation are paying off," Pinterest CEO Bill Ready said in November. "We’ve become a leader in visual search and have effectively turned our platform into an AI-powered shopping assistant for 600 million customers."

Unfortunately, becoming a "leader in visual search" has created some headaches for end users. The platform has become overridden with AI-generated slop, leading the company to introduce a dial to reduce the prevalence of artificial content.

Pinterest is just the latest company to downsize in favor of AI. A consulting firm found that AI was the stated blame for around 55,000 layoffs in the US last year. 

This leads some to question the veracity of this reasoning, as some entities could be engaging in something called AI-washing. This is when companies exaggerate the use of AI and blame it for standard cost-cutting layoffs, leading investors to think "ooh, shiny."

This article originally appeared on Engadget at https://www.engadget.com/ai/pinterest-is-conducting-a-massive-round-of-layoffs-to-prioritize-ai-powered-products-and-capabilities-163440004.html?src=rss