Canva announces major job cuts after 'our hardest year yet
Canva will cut 22% of staff, affecting 1,271 employees, as it grapples with slowed growth and rising AI costs.
Canva, the Australian design-tool startup, announced a 22% workforce reduction that will affect 1,271 employees, citing slowed growth and rising artificial-intelligence expenses. The decision, described by co-founder and CEO Melanie Perkins as “the hardest moment in our thirteen-year history,” will see staff either lose their jobs, be asked to relocate or change roles.
Perkins told employees that the company’s valuation has slipped in the past year amid concerns about AI’s impact on its business and the cost of integrating the technology into its platform. Two of Canva’s backers, Blackbird Ventures and Airtree, had already downgraded the valuation from A$60 billion at the end of last year to roughly A$49 billion. The company also cut its own internal valuation in response to soaring AI costs linked to new product roll-outs.
The restructuring will shift more product teams to Sydney, which will become the “primary home” for the company. Beginning next year, hybrid workers will be expected to spend two to three days in the office. Perkins said, “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.”
Canva was founded in 2013 by Perkins, who left university at 19. The company offers a library of templates and tools that enable users without design training to create professional-looking graphics, presentations, wedding invitations and business pitch decks. Its growth has slowed for the first time in a decade, a fact Perkins highlighted in a staff letter earlier this year.
The announcement comes as AI tools increasingly transform how people create and what they expect from design products. Perkins noted, “New technology is transforming what people can create, how they create it, and what they expect from the products they use.” The cuts underscore the pressure that AI development places on companies that rely on creative software.
For founders and operators, Canva’s decision signals that even high-growth startups must balance innovation with cost control. Investors will be watching how the company manages its AI investments while maintaining a lean workforce. The move also raises questions about the future of remote work, as Canva shifts to a hybrid model and consolidates teams in Sydney.
Looking ahead, Canva will need to navigate a market where AI can both enhance and threaten its core offering. The company’s ability to integrate AI while keeping costs manageable will determine whether it can sustain its growth trajectory and retain its position as a leading design platform. The outcome will be a bellwether for other tech firms facing similar AI-driven cost pressures.