Pinterest Is Plunging Today – What’s Its Global Restructuring Plan As Retail Sees It As Takeover Candidate

• The company anticipates incurring total pre-tax restructuring charges of approximately $35 million to $45 million.
• Pinterest said it is taking these actions to support its transformation initiatives, reallocating resources to its AI push. 
• BofA in a note to investors said that the Pinterest announcement suggests tariff-related pressure on ad spend has likely continued into Q1.

Shares of Pinterest plunged on Tuesday after it announced a board-approved global restructuring plan. 

The company’s restructuring plan includes a reduction in workforce that is expected to affect less than 15% of the company’s overall headcount as well as office space reductions.

Charges It Expects To Incur

The company anticipates incurring total pre-tax restructuring charges of approximately $35 million to $45 million, 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 core profit.

Pinterest had 5,205 full-time employees as of September last year. The job cut would translate to less than 780 positions.

AI Push

The company said it is taking these actions to support its transformation initiatives, 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.

The company also added that although it is reducing its overall staffing levels with these actions in the near term, Pinterest plans to reinvest in key development areas and strategic opportunities. 

The company expects to complete the restructuring plan by the end of its third quarter ending September 30, 2026, subject to local law and consultation requirements, according to a regulatory filing. 

Analysts Take

Evercore ISI analyst Mark Mahaney notes the stock is currently trading off about 8%, which it believes is indicative of concerns around Pinterest's ability to reaccelerate U.S.-Canada (UCAN) growth in 2026. 

Evercore in a note to investors said that the announced restructuring slightly decreases the odds of a UCAN reacceleration this year. That said, the firm believes Pinterest has very reasonable valuation support at these levels, as per TheFly. Evercore has an ‘Outperform’ rating on the stock with a price target of $40.

BofA in a note to investors said that the Pinterest announcement suggests tariff-related pressure on ad spend has likely continued into Q1. However, the reduction could enable Pinterest to maintain a margin growth trajectory toward low-30s EBITDA margins, the firm noted. 

The firm maintained a ‘Buy’ rating and $39 price target on Pinterest shares.

How Did Stocktwits Users React?

Retail sentiment around PINS trended in ‘bullish’ territory amid ‘extremely high’ message volume. 

One bearish user said that ‘company has no chance of surviving on it’s own,’ while adding that it is a takeover candidate. 

Another user predicted stock to continue to fall on Wednesday.

Shares in the company have fallen 27.5% over the past 12 months.
 

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