Australian design platform Canva has announced that about 22 per cent of its workforce faces job cuts, relocations, or role changes.
Co-founder and chief executive Melanie Perkins described the move as the company’s “hardest moment” in its 13-year history, citing slowing growth and the challenges of adapting torapid advances in artificial intelligence.
The restructuring will impact more than 1,200 Canva employees.
“For some people, this will mean changes to their roles or being asked to relocate to centralised hubs. Sadly, it will also mean saying goodbye to teammates and friends who have helped build Canva into what it is today,” Ms Perkins wrote to the staff.
Canva’s growth has reportedly slowed for the first time in a decade, while rising costs associated with integrating AI into its products have added to financial pressures.
Its reported valuation has also fallen from A$60bn ($41.8bn; £31.1bn) to about A$49bn.
Ms Perkins said in a note to the teams across 37 countries: “Behind every decision is someone we care deeply about, and I know the consequences will be very real for those directly affected, their families, friends and teammates.
“I’m deeply sorry for the pain and disruption this will cause for everyone affected. While nothing can make this news easier, we will do everything we possibly can to support everyone affected.”
As part of the restructuring, Sydney will become the main base for more of its product teams.
Employees working under hybrid arrangements will also be expected to spend two to three days a week in the office from next year.
“New technology is transforming what people can create, how they create it, and what they expect from the products they use,” Ms Perkins said in her note on Wednesday.
“This has been our hardest year yet, and as we shared earlier this year, our growth has slowed for the first time in a decade.”
She added: “To set ourselves up for the next decade, we need to refound Canva, getting back to our roots of small, empowered teams with the freedom to make decisions, take ownership and focus on what matters most for our community.”
Founded in 2013, Canva provides easy-to-use design tools and templates for creating presentations, graphics and other visual content.
In the note, Ms Perkins said that all affected employees – all 1,271 of them – will receive at least six months’ pay, 12 months of healthcare and mental health support, career coaching and job-search assistance.
They will also be allowed to keep their company laptops and access an alumni network to help find new roles.
The company is also offering$10,000 grants to the affectedemployees interested in starting businessesor community projects, without taking equity in their ventures, the note said.
On X, users mocked the move. “22% of its workforce. 1,271 people impacted. And the explanation? The company needs to get back to acting like a small tech startup. Oh, that’s rich. Apparently, after 13 years of building a company, the secret to becoming a startup again is getting rid of the people who built it,” one user wrote.
