Pinterest (PINS) has announced a global restructuring plan to lay off about 15% of its workforce and reduce its office footprint. The move is part of Pinterest’s push to reallocate resources toward AI roles, accelerate development of AI products, and reshape its sales and go-to-market strategy. Following the news, PINS stock tanked over 9% on Tuesday, reflecting concerns about the scale of the restructuring and the near‑term impact on operations.
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According to the filing, Pinterest expects to incur $35 million to $45 million in pretax restructuring charges. The plan is set to be completed by the end of Q3 2026.
The move comes as Pinterest positions itself as a more AI-driven platform, with goals to improve personalization, strengthen its ad tools, and lower long-term costs. The company has already rolled out several AI-based features, including Pinterest Assistant, an AI companion that helps users with shopping suggestions, and AI-powered board updates that automatically curate content.
Evercore ISI Analyst Remains Bullish
Despite the sell-off, Evercore ISI analyst Mark Mahaney reiterated a Buy rating and $40 price target on Pinterest stock, noting that the restructuring could help the company cut costs more effectively over time.
Mahaney estimates the plan could generate up to $175 million in annual cost savings, though he expects a major portion of those savings to be reinvested into the business.
The five-star analyst noted that the drop reflects investors’ uncertainty about Pinterest’s ability to boost its UCAN growth in 2026. He pointed to several growth drivers the company outlined on its Q3 call, such as deeper partnerships with major retailers using more precise bidding tools like Performance+ ROAS, expanding into mid-market and small businesses, and improving AI-driven bidding systems to better track full‑funnel performance.
Still, he added that the restructuring “slightly decreases the odds” of a UCAN rebound this year because of the execution risks that come with such a transition.
Mahaney argued that Pinterest’s valuation remains attractive, with the stock trading at 9x his 2026 EBITDA estimate and 10x 2026 free cash flow. At these levels, he believes Pinterest has “very reasonable valuation support.”
Is PINS a Good Stock to Buy?
Turning to Wall Street, PINS stock has a Strong Buy consensus rating based on 18 Buys and six Holds assigned in the last three months. At $37.55, the average Pinterest stock price target implies a 60.4% upside potential.
