Design firm Canva cuts over one thousand jobs in major business shake-up

Design platform Canva is cutting and changing the roles of more than one thousand workers in what its co-founder calls the toughest moment in the company's history.

The Job Cuts

Chief Executive Melanie Perkins told staff that 1,271 people will either lose their jobs, move to different roles, or be asked to relocate. The changes affect 22% of the workforce across the 37 countries where the company operates. Perkins stated that growth slowed for the first time in a decade during this thirteen-year-old firm's hardest year yet.

Causes And Valuation

The business has faced financial pressure from the high cost of adding new artificial intelligence technology into its platforms. Investors including Blackbird Ventures and Airtree reportedly lowered the company's valuation from A$60bn to about A$49bn. Canva also reduced its own internal valuation amid these rising AI expenses.

Office Changes

The company announced that Sydney will serve as the main home for more of its product teams. Starting next year, workers who work from home part of the time must come into the office two to three days a week.

Context

Tech companies often restructure and cut jobs when growth slows down and new technology requires heavy spending. AI tools are changing how design software works, forcing companies to invest huge sums to stay competitive.