Pinterest Inc has outlined a global restructuring that will reduce its workforce by less than 15% and cut back on office space as part of a broader operational shift, according to the companys regulatory filing. The program is scheduled to be completed by the end of the third quarter of 2026 and is expected to generate pre-tax restructuring charges in the range of $35 million to $45 million, primarily driven by cash expenditures.
Management said the moves are intended to reposition resources toward strategic priorities - notably hiring and expanding AI-focused roles and teams, building AI-powered products, and accelerating changes to the companys sales and go-to-market approach. The company framed the effort as a reallocation of investment rather than a simple cost-cutting exercise.
Market analysts weighed in quickly after the announcement. Stifel retained its Buy rating on Pinterest stock and left its price target at $40.00. Stifel noted that the company did not provide an update on its expected fourth-quarter 2025 performance in conjunction with the restructuring news. The firm said it will refresh its broader view and update its financial model following Pinterests fourth-quarter earnings call, which is scheduled for February 12.
Separately, Jefferies reiterated a Hold rating on Pinterest with a $28 price target. Jefferies commented that Pinterests revenue expectations for the fourth quarter and the subsequent first quarter appear reasonable, taking into account historical seasonality and what the firm described as a stable advertising market. Jefferies also highlighted that a potential delay in furniture tariff rate hikes could provide a modest boost to first-quarter results.
In addition to the restructuring and analyst commentary, a media report has suggested a possible takeover scenario. The Information reportedly predicted that OpenAI might acquire Pinterest in 2026 to strengthen its online shopping and advertising capabilities. That prediction was cited alongside the companys announced plan but the filing itself focused on the restructuring measures and reinvestment goals.
The announced pre-tax charge range - $35 million to $45 million - is expected to be taken primarily in cash and will be recorded ahead of the end of the third quarter of 2026. The company indicated that resources freed by the restructuring will be redirected to AI initiatives and changes in sales operations, signaling an emphasis on product and go-to-market evolution.
Context summary: Pinterest has initiated a workforce and office footprint reduction of under 15%, anticipates $35-45 million in pre-tax cash charges, and intends to reinvest in AI and sales transformations. Stifel remains constructive with a Buy rating and $40 target while Jefferies maintains a Hold at $28. A separate report suggested a potential acquisition interest from OpenAI in 2026.