Canva cuts 22 per cent of staff in major restructure

Summarised from 4 outlets · Updated 4 Nov, 00:27 · Archive

Canva is cutting or relocating 1,271 people, 22 per cent of its global workforce, in a major restructure announced by co-founder and CEO Melanie Perkins on Wednesday. She described the move as 'without doubt the hardest moment in our thirteen-year history'. The company said the changes would affect some staff through role changes, relocation to centralised hubs, or job losses, though Perkins did not specify the exact number of redundancies.

Perkins said the company needed to 'refound Canva, getting back to our roots of small, empowered teams'. The restructure will consolidate the Product, Growth and Platform teams into one product organisation, simplify management layers, and make Sydney the 'primary home' for more product teams and other roles requiring close collaboration. From January, hybrid workers will be expected to spend two to three days in the office each week.

The graphic design company has faced challenges this year. BBC Business reports that Canva's growth slowed for the first time in a decade and its valuation dropped over concerns about artificial intelligence's impact on its business and the costs of incorporating AI into its platforms. Two backers, Blackbird Ventures and Airtree, reportedly downgraded the company's valuation from A$60bn at the end of last year to about A$49bn.

Staff leaving Canva will receive at least six months of salary and retain healthcare coverage for a further 12 months in countries where workers receive that benefit. They can keep their laptops and apply for US$10,000 grants to start their own ventures. Perkins said 'new technology is transforming what people can create, how they create it, and what they expect from the products they use'. The Guardian World reports that the restructure mirrors a trend across the technology sector as software companies compete against cheaper artificial intelligence alternatives whilst embedding AI tools themselves.

How it is being reported

• Canva to axe more than 1,200 jobs after 'hardest year' as users flock to AIThe company's co-founder and CEO also told staff they would merge departments, work in the office more often, and apologised for the redundancies on WednesdayThe Mirror · 4 Nov, 03:34
• Canva layoffs: design giant to cut or relocate more than 1,200 jobs in major restructureChief executiveMelanie Perkins describes job cuts as ‘without doubt the hardest moment in our thirteen-year history’ in email to staff Get our breaking news email , free app or daily news podcast Canva is cutting or relocating more than 1,200 jobs, representing 22% of its global workforce, as part of a major restructure that includes laying off staff who helped build the Australian-founded design platform. The changes mirror a trend across the technology sector, where software companies are fighting to stay competitive against cheaper artificial intelligence disrupters while aggressively…Guardian World · 4 Nov, 00:14
• Canva announces major job cuts after 'our hardest year yet'CEO Melanie Perkins says more than 1,000 staff will either lose their jobs or be asked to change roles.BBC Business · 4 Nov, 00:09
• Canva is announcing changes and layoffs affecting 22 percent of its staffCanva is making significant changes affecting 1,271 people, which is 22 percent of its staff, co-founder and CEO Melanie Perkins announced today. "For some people, this will mean changes to their roles or being asked to relocate to centralised hubs," says Perkins. "Sadly, it will also mean saying goodbye to teammates and friends who have […]The Verge · 3 Nov, 22:59

In this story: Canva · Melanie Perkins · Sydney · Australia · Blackbird Ventures · Airtree

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