Pinterest does not make headlines very often, but the social media platform beloved by Midwestern moms claims to have more active users than X or Snapchat, and is the latest company to sound off on the issue of DEI. The social media platform told investors in a recent filing spotted by TechCrunch that its efforts around diversity, equity, and inclusion could result in harm to Pinterest’s business if they are “are perceived as insufficient or overdone,” and that the company “may be subject to investigations, litigation, and other proceedings.”
Companies across the spectrum have been dropping their DEI initiatives as President Trump has used his executive powers to target the initiatives. Meta, Google, and Amazon are among the tech giants that have eliminated or watered down their DEI programs and wiped clean their websites of any language relating to the practice. Other corporations like Apple, Costco, and the NFL have kept their DEI commitments in place. Having a monopoly in an industry helps.
Proponents of DEI have long argued that having a workforce comprised of individuals from diverse backgrounds can result in better business performance as companies create products or services that appeal to all demographics. Tech industry insiders often have a blind spot for the ways in which their products can be used to harass women, for instance, and having women represented on staff can help ensure potential issues are identified early in product development.
Critics, however, say DEI programs have unfairly disadvantaged caucasian men, and that ideological diversity is more important than intrinsic qualities like skin color or race. DEI, as far as they are concerned, is discriminatory and gives jobs to people who do not otherwise deserve them. Ironically, the Silicon Valley venture capital firm Andreessen Horowitz earlier this week hired Daniel Penny, the former U.S. Marine acquitted for choking an unhoused man to death on the New York City subway, despite his lack of experience or qualifications in the field of investing. Virtue signaling is okay for me, not for thee.
While companies like Tractor Supply and Harley Davidson have been easy targets for anti-DEI campaigners, it does not seem likely that Pinterest will face the same scrutiny. The company’s userbase skews heavily young and female, a demographic more likely to value DEI at work. A right-wing, masculine culture like the one Mark Zuckerberg aims to foster at Meta does not seem to align with Pinterest’s audience.
Still, vibes across Silicon Valley are shifting, and Pinterest could nonetheless be targeted by activists who have begun to argue that prioritizing DEI risks a negative impact on business fundamentals. As a public company, Pinterest has an obligation to do what is in the best interest of shareholders, and some believe DEI results in companies not hiring the best possible talent. Pinterest has not yet released its diversity report for 2024 and has pared back its mentions of DEI in more recent annual filings. The company employed an officer overseeing DEI, Nichole Barnes Marshall, but LinkedIn indicates she left the company in November of last year.
On Thursday, Pinterest reported its earnings for the final three months of 2024, with its stock surging 20% after it exceeded expectations with revenue of $1.15 billion for the quarter and earnings of $470 million. To put that in context, the Wall Street Journal reported recently that under Elon Musk, X saw $2.7 billion in revenue and $1 billion in earnings for all of 2024. Pinterest makes most of its money from “promoted pins,” allowing users to buy products they see directly through the app.
Pinterest is in somewhat of an enviable position. It is not constantly the subject of scrutiny or derision like other social media companies and just seems to cruise along printing money and minding its own business. The pinboard service is a calm, relaxing place to find inspiration for the furnishings for a new apartment or plan a wedding reception. Pinterest is being cautious by disclosing to investors that DEI initiatives could put it at risk, but “anti-woke” activists likely do not have the company on their short list of targets. Do not come for sweet, innocent Pinterest.
