Canva lays off over 1,200 people amid slowing growth
AI-summarised brief · reviewed before publication
Design platform Canva announced a 22% workforce reduction, laying off 1,271 employees as growth slows for the first time in a decade. CEO Melanie Perkins told staff that despite scaling the service to hundreds of millions of users, the company must restructure to sustain future success. The cuts accompany a reorganization that merges product, growth and platform groups, reduces subspecialisation, and shifts to a hybrid‑office model. Canva is also deploying its own AI models to lower reliance on external providers, but rising AI costs forced a downgrade of its revenue‑growth outlook from 30% to 20% and prompted investors to trim its valuation to $35 billion. The move comes amid intensifying competition from AI‑focused startups and chatbots such as ChatGPT and Gemini.
💡 Why It Matters
- · Canva’s downsizing underscores how soaring AI expenses are forcing even fast‑growing SaaS firms to curtail headcount and reassess growth targets, reshaping the economics of the design‑tech market.