The New Horizons spacecrafts flyby of Kuiper Belt Object (KBO) (486958) Arrokoth revealed a bilobed shape with highly flattened lobes both aligned to its equatorial plane, and a rotational axis almost aligned to the orbital plane (obliquity ~99 deg). Arrokoth belongs to the Cold Classical Kuiper Belt Object population that occupies dynamically undisturbed orbits around the Sun, and as such, is a primitive object that formed in situ. Therefore, whether its shape is primordial or evolutionary carries important implications for understanding the evolution of both KBOs and potentially their dynamically derived objects, Centaurs and Jupiter Family Comets (JFC). Applying our mass loss driven shape evolution model (MONET), here we suggest that the current shape of Arrokoth could be of evolutionary origin due to volatile outgassing in a timescale of about 1 to 100 Myr, while its spin state would not significantly affected. We further argue that such a process may be ubiquitous in the evolution of the shape of KBOs shortly after their formation. This shape changing process could also be reactivated when KBOs dynamically evolve to become Centaurs and then JFCs and receive dramatically increased solar heating.