WASHINGTON (dpa-AFX) - Pinterest (PINS) has dismissed several engineers after they built an internal tool designed to track job cuts, drawing a sharp response from CEO Bill Ready as the company pushes through a broader restructuring.
The action followed Pinterest's announcement that it would reduce its workforce by less than 15% and scale back office space, part of a plan to redirect resources toward artificial intelligence initiatives. After the layoffs were disclosed, employees sought more clarity on which teams were affected and whether further cuts were planned.
According to people familiar with the situation, a small group of engineers created custom software to estimate the scope of the layoffs by accessing confidential internal data. Pinterest said the tool improperly identified affected employees and was shared more widely, violating company policy and employee privacy. The company confirmed the incident but did not specify how many staff were terminated.
Ready defended the decision at an all-hands meeting, stressing that while debate is welcome, actions that undermine company direction are not. He said detailed layoff information would be handled at the team level to protect privacy and urged employees who fundamentally disagreed with Pinterest's strategy to consider opportunities elsewhere.
The episode comes as Pinterest faces mounting pressure to accelerate its AI investments while competing with larger tech platforms for users and advertising dollars. With slowing ad growth and ongoing industry-wide job cuts, the company's leadership framed the firings as part of maintaining focus and alignment during a critical period of transition.
PINS currently trades at $19.96 or 3.92% lower on the NYSE.
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