Canva, the Australian design platform that became a global household name, is undergoing a significant restructuring that will see 22% of its workforce affected, including layoffs. Co-founder and CEO Melanie Perkins described the move as 'without doubt the hardest moment in our thirteen-year history.'
A Difficult Decision
In a heartfelt message to staff, Perkins announced that 1,271 employees would either lose their jobs, be asked to relocate, or transition into different roles. She acknowledged that the company's growth had slowed for the first time in a decade, calling the past year 'our hardest year yet.'
'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,' Perkins wrote.
Valuation Pressures and AI Challenges
The restructuring comes amid reports that Canva's valuation has taken a hit. Two of its major backers, Blackbird Ventures and Airtree, reportedly downgraded the company's valuation from A$60bn ($41.8bn; £31.1bn) at the end of last year to approximately A$49bn. The firm also reportedly cut its internal valuation due to soaring expenses related to artificial intelligence (AI) as it integrates new technology into its products.
Perkins noted that 'new technology is transforming what people can create, how they create it, and what they expect from the products they use.' The company is clearly feeling the pressure to keep pace with the AI revolution while managing costs.
Shift to Centralised Hubs
As part of the shake-up, Sydney will become the 'primary home' for more of Canva's product teams. Starting next year, hybrid workers will be expected to spend two to three days in the office. The company, which has staff in 37 countries, is consolidating its operations to foster collaboration and innovation.
From Startup to Global Player
Perkins, who left university at 19 to found her first venture, launched Canva in 2013. The platform offers a wide range of templates and tools that enable users without technical skills or a design background to create professional-looking graphics and presentations, from wedding invitations to business pitch decks. Canva quickly grew into one of Australia's most celebrated startups, reaching a valuation of A$60bn at its peak.
The latest job cuts reflect a broader trend in the tech industry, where companies are recalibrating their strategies in response to economic headwinds and the disruptive potential of AI. Canva's decision to reduce its workforce underscores the challenges even the most successful startups face in a rapidly evolving landscape.
As Canva navigates this turbulent period, the focus will be on supporting affected employees and steering the company toward sustainable growth. Perkins emphasized that the changes, while incredibly hard, are necessary to ensure Canva's long-term success.
