Canva Cuts 22% of Staff and Restructures as AI Costs Weigh on Growth

At a glance

Australian design software company Canva will cut 1,271 employees, or 22% of its total workforce. Rising costs to run its AI features and slowing growth have led the company to reorganize.

Key points

1. 1

   CEO Melanie Perkins told staff that the company's growth has slowed for the first time in 10 years.

2. 2

   The company lowered its revenue growth forecast for this year from 30% to 20%.

3. 3

   Early investors have marked down Canva's company value to about $35 billion.

4. 4

   The company is merging its product, growth, and platform teams into one organization and expanding a work model that combines remote work with office attendance.

Why it matters

It shows that AI can be a new opportunity for design companies but can also bring a heavy cost burden.