Canva is reportedly set to lay off 22% of its workforce

Canva has announced a restructuring that will affect 1,271 employees, or 22% of the Australian company’s workforce. The measure includes layoffs, relocations, and changes to responsibilities, amid slowing growth and the increasing costs of integrating artificial intelligence.

Co-founder and CEO Melanie Perkins described the decision as the most difficult moment in the company’s 13-year history. She explained that the pace of business development had slowed for the first time in a decade, as the technology market undergoes rapid changes.

Sydney will become the main headquarters for several product teams. Starting next year, employees working in a hybrid arrangement will have to come to the office two or three days a week. Some employees will lose their jobs, while others will be relocated or given new roles.

The restructuring is taking place as investors assess the impact of artificial intelligence on Canva’s business model. The company’s valuation is said to have fallen from 60 billion Australian dollars to approximately 49 billion, while spending on developing AI-based products has increased. Perkins emphasized that the technology is changing both creative possibilities and user expectations.

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