Canva to lay off over 1,200 employees amid slowing growth
Design software company Canva is cutting 22% of its workforce, or 1,271 employees, as the firm grapples with a significant slowdown in growth and rising AI-related costs.
Canva has announced a workforce reduction of 1,271 employees, representing 22% of its total staff. CEO Melanie Perkins stated that the move is a necessary pivot as the company experiences its first period of decelerated growth in a decade, marking what she described as the company’s most difficult year to date.
In addition to the layoffs, the firm is restructuring its internal organization by merging product, growth, and platform teams to streamline communication. The company is also moving toward a more rigid hybrid work model, requiring staff to work from the office several days a week.
The restructuring comes after Canva lowered its revenue growth forecast from 30% to 20%, driven largely by substantial investments in proprietary AI models and infrastructure. Earlier this year, this shift in performance led investors to decrease the company's valuation to approximately $35 billion. Canva now faces mounting competitive pressure from AI startups and integrated chatbot tools that threaten its traditional market share.