OMM Newsroom
Australian design platform Canva is restructuring, affecting 22% of its workforce. A total of 1,271 employees will face layoffs, relocation or changes to their roles.
Canva co-founder and CEO Melanie Perkins confirmed the scale of the restructuring and called the decision “undoubtedly the most difficult moment” in the company’s 13-year history, AnewZ reported. Founded in 2013, the company has grown rapidly since its launch.
Slower growth prompts restructuring
In a message to employees on Wednesday, Perkins said the company had faced a difficult year and that growth had slowed for the first time in a decade. “This has been our toughest year yet and, as we shared earlier this year, our growth has slowed for the first time in a decade,” she wrote.
Perkins described the restructuring as an “extremely difficult decision” with wide-ranging consequences for employees. Some workers will have their roles changed or be required to move to central offices, she said. The company will also part ways with employees who helped it reach its current position.
Canva has not said how many of the 1,271 employees will be laid off, relocated or moved into different roles.
The restructuring will also affect how employees work across the company’s operations in 37 countries. More product teams will be concentrated in Sydney. Employees on hybrid work arrangements are expected to work in the office two to three days a week from next year.
AI costs rise as company valuation falls
The restructuring comes amid growing concerns about the impact of artificial intelligence technologies on Canva’s business model. The company is facing rising costs as it integrates AI into its products.
Earlier this year, Canva’s major investors Blackbird Ventures and Airtree cut the company’s valuation to about 49 billion Australian dollars ($34.4 billion), down from 60 billion Australian dollars ($42.1 billion) at the end of last year.
Canva is also reported to have reduced its internal valuation as the cost of developing and launching AI-powered products has risen.
The rapid development of generative AI is changing the digital design industry, as users create images, presentations and other visual content with increasingly advanced automated tools. Canva is expanding its own AI capabilities to respond to changing customer expectations and intensifying competition in the design software market.
Canva’s growth and new challenges
Canva was founded in 2013 by Cliff Obrecht and Melanie Perkins, who left university at 19 to pursue her first business venture. The company has become one of Australia’s leading technology firms.
The platform was built around the idea of making graphic design accessible to everyone, regardless of technical skills or professional experience. It offers templates and tools for creating presentations, social media graphics, marketing materials, invitations and business presentations.
The company’s rapid international expansion helped it become a leading player in online design. Its employees now work in 37 countries. The latest restructuring points to a more challenging phase as Canva seeks to maintain growth, manage rising costs and invest in AI technologies reshaping the industry.
