Canva, the Australian design software company, announced it will lay off 1,271 employees, representing 22% of its workforce. In a letter to staff, co-founder and CEO Melanie Perkins stated that the decision was made due to the ongoing impact of artificial intelligence on the workforce and a need to return to the company's "small start-up roots."
Perkins described the layoffs as "the hardest moment in our thirteen-year history," explaining that "small changes won't be enough" to prepare the company for the next decade. The company aims to "refound Canva, getting back to our roots of small, empowered teams with the freedom to make decisions, take ownership, and focus on what matters most for our community."
Employees affected by the cuts will receive at least six months' salary, 12 months of healthcare coverage where applicable, and will be allowed to keep their work MacBooks. Additionally, departing staff can apply for grants of $14,500 to start their own ventures.
Starting in January, hybrid staff will be required to work in the office two to three days per week. The company's move signals the significant shifts occurring across the tech industry as companies adapt to the rapid advancements and integration of AI technologies.