Canva announces major restructure affecting 22% of its workforce
Canva, the Australian-based software startup, has announced a major restructure that will affect more than 1,200 roles, including job cuts.
The startup has reported the impact of AI on its business, as well as the cost of incorporating the technology into its platform, as contributing factors to the restructuring.
Co-Founder and CEO Melanie Perkins has said that this year has been the “hardest yet” for the company. She said the potential layoffs were also “without doubt the hardest moment in [Canva’s] 13-year history.”
“While we believe these changes are critical to help set Canva up for the future, Canva would not be the company it is today without their hard work, and we want to do everything we can to help set them up well for their next chapter,” Perkins said via LinkedIn.
The announcement comes after Canva’s biggest institutional investor, Blackbird, slashed the company’s valuation by 17% to $34.9 billion due to fears that AI would replace software businesses.
Canva also reportedly cut its own internal valuation amid soaring AI expenses related to the rollout of new products.
Canva was founded in 2013 by Perkins, Cliff Obrecht, COO, and Cameron Adams, CPO. Since then, Canva has grown to have over 265 million active users and more than 31 million users who pay for extra plans.
Canva is a platform that offers templates and tools to help users without technical skills design professional-looking graphics and content for any purpose, from business pitches to web designs.
The news comes not long after Canva announced its latest AI innovation, Canva 2.0, which the startup claimed helps users use AI conversational tools to develop design ideas. It also comes after the company announced its Canva World Tour, a global event and educational campaign by Canva to bring communities together.
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