Canva lays off 1.271 employees and reduces its staff by 22%
Canva is cutting 22% of its staff, laying off 1,271 employees amid a growth slowdown and rising AI costs. The company is also reshuffling organizational teams and shifting toward proprietary AI models to manage expenses
Canva is cutting 22% of its staff, laying off 1,271 employees amid a growth slowdown and rising AI costs.
The company is also reshuffling organizational teams and shifting toward proprietary AI models to manage expenses.
Co-founder and CEO Melanie Perkins updated staff in a message. She said that although the platform has been in operation for thirteen years and serves hundreds of millions of people, this year has been the most difficult in its history. The company's growth has slowed for the first time in a decade.
Reorganization and changes in the way of working
Canva is changing its structure and merging its product, development, and platform teams. Itβs also reducing specialized roles, meaning employees can take on more responsibilities. The company is also moving to a hybrid work model, requiring employees to be in the office a few days a week.
The cost of artificial intelligence and competition
The company is trying to reduce its costs and reliance on third parties by building its own AI systems. However, rising costs have forced it to cut its revenue growth forecast from 30% to 20%. Because of this, its early investors reduced the company's valuation to about $35 billion earlier this year.
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At the same time, Canva faces increasing competition from new AI companies and general chat programs, such as ChatGPT and Gemini.
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