Design software company Canva is planning to cut 22% of its workforce, affecting 1,271 employees, as the business faces a slowdown in growth.
Co-founder and CEO Melanie Perkins informed employees about the decision in an internal message, explaining that although Canva has expanded significantly, the company needs to adapt to changing conditions and address slower growth.
“Over the past thirteen years, we’ve turned a dream in a pitch deck into a platform used by hundreds of millions of people. None of it would have been possible without the talent, imagination, and care of every single person who has been part of this journey. Yet success in our first chapter doesn’t guarantee success in the next. 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,” Perkins wrote.
As part of the restructuring, Canva plans to reorganise its management structure by bringing together its product, growth and platform teams to improve coordination and reduce communication barriers.
The company is also looking to reduce employee subspecialisation, potentially requiring staff to take on a broader range of responsibilities. In addition, Canva is moving towards a hybrid working arrangement, with employees expected to attend offices several days a week.
Canva has been developing its own artificial intelligence models to reduce operating expenses and dependence on third-party technology providers. However, rising AI-related costs have forced the company to lower its revenue growth forecast from 30% to 20%.
The revised outlook also contributed to early investors reducing Canva’s valuation to approximately $35bn earlier this year.
The company is also facing growing competition from AI-focused startups and general-purpose chatbot platforms such as ChatGPT and Gemini. Their image-generation capabilities are making it easier for users to create posters, presentations and other visual content, increasing competitive pressure on Canva and established design software providers.
