Canva reduces workforce by 22 percent
Graphic design software firm Canva is laying off 1,271 employees following a decline in growth. The company has also lowered its 2026 revenue projections citing high AI implementation costs.
Canva announced a major restructuring on November 3, resulting in the layoff of 1,271 staff members, or 22 percent of its global workforce. CEO Melanie Perkins attributed the decision to a slowing growth trajectory, marking the first time the company has faced such headwinds in a decade.
The company has subsequently revised its 2026 revenue growth forecast, lowering it from 30 percent to 20 percent. Executives noted that the substantial costs associated with developing and deploying generative AI features have placed significant pressure on the firm's financial performance.
As competitors like Google and OpenAI continue to integrate generative tools into standard workflows, Canva faces a shifting market landscape. The restructuring aims to realign the business with current revenue realities while attempting to navigate the high-cost transition toward an AI-focused product model.