UPDATED WITH CEO QUOTES: Mortgage brokerage Pineapple Financial Inc. (PAPL-A) will lay off over 60 per cent of its workforce and will see a significant reduction in operating costs as it implements widespread adoption of artificial intelligence (AI) technology.

The Toronto-based, tech-centric mortgage brokerage announced the move Tuesday morning, which will include reductions to its professional services, software, marketing and other operating expenses.

“The objective is to reduce manual processes, improve efficiency, and allow our platform to scale while operating with a significantly lower cost base,” Shubha Dasgupta, CEO of Pineapple, said in an email exchange with RENX Homes following the announcement.

Dasgupta declined to disclose how many employees are impacted by the moves.

Pineapple said in the release it is “realigning the organization around a leaner, AI-enabled operating model,” which entails using AI systems to automate tasks such as data analysis, and customer and agent engagement.

The cost-saving measures are expected to decrease annual expenses by over $3.4 million, Pineapple said, and represent a “permanent structural reset” of its cost base.

"We have structurally lowered our operating cost base entering 2026," Dasgupta said in the release. "This is a disciplined reset of our expenses designed to improve operating leverage and earnings durability.”

Pineapple streamlining with AI

Pineapple began the restructuring process earlier this year, Dasgupta told RENX Homes. 

The workforce cuts and other expense reductions are expected to slash Pineapple’s monthly cash burn by over 50 per cent. When finished, the restructuring is anticipated to address Pineapple’s fixed cost base and prepare the firm for its next phase.

To date, approximately $1.8 million in annualized cost savings have already taken place and are expected to be reflected in Pineapple’s run-rate by March 31, the company said. Pineapple also said the restructuring is “largely complete,” with the company now focused on execution and unit economics.

“With this leaner operating model in place, we are positioned on a clear path toward higher EBITDA margins and near-term breakeven on a cash-flow basis,” Dasgupta said in the release, “while maintaining the capacity to scale efficiently as volumes recover."

As of December 2025, Pineapple had a $13.7-billion mortgage portfolio. A mortgage brokerage oriented around technology, the company offers software products for professionals in the sector to track deals, generate reports and manage a mortgage business website.

In an interview late in 2025, Dasgupta told RENX Homes Pineapple was moving its portfolio to the blockchain for security, transparency and to assist in designing new product offerings.

Pineapple's AI-driven expansion plan

Pineapple is joining other companies that are collectively laying off thousands of workers due to the implementation of AI, primarily in the technology sector.

To further build on its AI-centric operating model, Pineapple will also be launching a search and sales agent onboarding program powered by the technology to accelerate network expansion and platform adoption, the company said.

Pineapple plans to use AI to find and onboard mortgage professionals more efficiently, it said, while enhancing recruitment through automated outreach. The company plans to connect with over 40,000 agents in Canada to grow its footprint and drive revenue as part of the strategy.