Canva will cut, change or relocate 1,271 jobs, about 22% of its workforce, as the Sydney design company tries to “refound” itself after growth slowed for the first time in a decade.
Founder and CEO Melanie Perkins told staff Wednesday that the overhaul is “without doubt the hardest moment in our thirteen-year history.” The total includes role changes and relocations as well as layoffs, and Canva has not said how many roles will disappear.
Canva will fold its product, growth and platform teams into one product organization with fewer management layers. Sydney becomes the main home for more product teams, and Canva will ask some employees to move there. Starting in January, Canva expects most hybrid employees to come in two to three days a week.
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Canva cut its revenue growth forecast from 30% to 20% and delayed several product launches because serving AI to its mostly non-paying users cost too much. Perkins wrote that “small changes won’t be enough.” Perkins pointed to “new technology” changing how people create but did not name AI.
Investors have cut their valuations of a company once seen as one of the hottest IPO prospects. T. Rowe Price cut its Canva holding 20% to US$1,189 a share, implying a valuation of about US$30.4 billion at the end of August.
Departing employees will receive at least six months’ salary and 12 months of healthcare coverage where Canva offers it, and they can keep their laptops. Canva will also offer grants of up to US$10,000 to those who start a business or community project.
The cuts add to a string of restructurings at Australian tech companies this year. Atlassian cut 1,600 jobs, and WiseTech Global said it would shed about 26% of its global workforce.
