Pinterest is one of the leading social media platform specially for businesses. It has grown to become one of the most popular social media platforms, and it's not just for sharing photos anymore.
The company announced on Tuesday that it was cutting about 150 jobs from its headquarters in San Francisco, mainly from its engineering team. The layoffs are attributed to a "greater focus on product development," according to a statement from Pinterest.
"We're incredibly excited and optimistic about our future, but we need to make some changes now," said CEO Ben Silbermann in an internal memo obtained by TechCrunch. "I understand this is difficult news." It has about 135 million monthly active users (MAUs) and is used by 8% of the U.S. Internet population, according to comScore. The company reported revenue of $353 million in 2015, a significant increase over 2014's $277 million in revenue.
In addition to its own revenue, Pinterest generates advertising sales through sponsored pins and promoted pins in search results. It also sells ads based on keywords and other signals it uses to target users with relevant content.
Pinterest has been cutting costs at all levels of its business as it tries to become profitable while simultaneously growing its user base and diversifying its revenue streams. The company laid off 90 employees last year, including several senior executives who played prominent roles in its early years before being replaced by others who had more hands-on experience with the product development process.
Today's announcement represents another round of layoffs for Pinterest as it attempts to expand into new markets beyond its core e-commerce business model. A year ago, Pinterest laid off around 100 employees from its engineering team as part of a broad restructuring that included closing its San Francisco office permanently. They have recently announced that they are cutting about 150 jobs from their team. Pinterest has a very small team and this move is going to affect the overall growth of their product.
Pinterest is currently valued at around $11 billion and it could go higher than that in the future. The company is planning on reducing its headcount by 15% by 2020 which means that there would be only about 210 people working for Pinterest right now.
The layoffs are going to affect both current employees as well as new hires who joined in 2018 and 2019. This move may cause some issues in terms of hiring new staff members at Pinterest because they will have to wait until 2020 before they can get their jobs back.
Pinterest has been trying to become more leaner since they started developing new features and improving their product over time but this move shows how serious they are about improving their profitability as well as cash flow situation (which is important for any business).
The layoffs are not affecting any of the important departments like engineering or sales but it does mean that those departments will have less resources available for them which may affect how fast they can build more features or improve existing ones. The company is currently firing, so that they can save some money and shall not go in loss.
Pinterest's Senior Director of Product Management, said: "This is a difficult time for Pinterest and we're taking steps to ensure we have the right resources in place to continue our mission."
"We recognize that this is a challenging period for us and our team," he added. "We're grateful for all of their hard work, which has helped make Pinterest an incredibly successful company." No doubt Pinterest gained a lot of trust and users since 2019 and now it’s one of the best in the field.