2023-03-27 16:25:02 ET
- Pinterest ( NYSE: PINS ) says that a new restructuring plan will include sub-leasing its office space and even abandoning some offices - an approach linked to job cuts it launched last month.
- The company will sublease its leased office space in San Francisco, where it's moving out by the end of the first quarter, and it will abandon "certain other leased office spaces" as well, it said in an SEC filing after hours Monday.
- Pinterest ( PINS ) expects it will incur $100M-$125M in charges from the new plan - about $95M-$110M in noncash impairment and abandonment charges, and $95M-$115M expected to be incurred in the first quarter, with about $2M-$4M expected to result in future cash payments.
- Early lease terminations could affect cash flows materially, Pinterest also said. Meanwhile, actions associated with the office space reductions are expected to be fully complete this year.
- Pinterest stock ( PINS ) rose 2.1% during the regular session following an upgrade at UBS Monday; the stock was up another 0.6% following its restructuring filing.
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Pinterest to sub-lease SF office, abandon other office spaces