They are pivoting because they don't want to fail. They maybe made a mistake or the market changed, acknowledged it and took action based on this information.
I agree with your comment except the last sentence. Negative or not, I think it's a poor choice of word to use in the context of a CV/career.
When interviewees are asked "So why are you looking to move from your present job?". Saying that you need a new challenge sounds very different than "needing to pivot".
When interviewees are asked "So why are you looking to move from your present job?". Saying that you need a new challenge sounds very different than "needing to pivot".