Canva, the Australian graphic design software company, has announced substantial job cuts, affecting 22% of its global workforce. Co-founder and CEO Melanie Perkins described the decision as "without doubt the hardest moment in our thirteen-year history," impacting 1,271 employees who will either lose their jobs, be asked to relocate, or change roles.
The company's valuation has reportedly seen a decline over the past year, attributed in part to concerns about the impact of artificial intelligence (AI) on its business model and the costs associated with integrating AI technologies into its platforms. Perkins noted that the company has experienced a slowdown in growth for the first time in a decade.
"New technology is transforming what people can create, how they create it, and what they expect from the products they use," Perkins stated in a message to staff. The changes are described as "significant" and aim to address the evolving technological landscape and market conditions.
Canva, founded in 2013, provides tools and templates enabling users without extensive design or technical skills to create professional-looking graphics, presentations, and other visual content. The company has staff in 37 countries, and its announcement signals a strategic shift, with Sydney designated as the "primary home" for more of its product teams. Additionally, hybrid workers will be expected to spend two to three days per week in the office starting next year.
Earlier this year, some of Canva's investors, including Blackbird Ventures and Airtree, reportedly reduced their valuation of the company from A$60 billion (approximately $41.8 billion) at the end of 2023 to around A$49 billion. The company has also reportedly adjusted its internal valuation to account for rising AI-related expenses tied to new product rollouts.