Canva Cuts 22% of Staff as Rising AI Costs Slow Growth Across Its Platform

At a glance

Australian design platform Canva has chosen 22% of its roughly 5,000 employees to be laid off, reassigned to other roles, or moved to a different location. The move comes as growth has slowed and the cost of offering AI features to free users has grown.

Key points

1. 1

   Canva's cost of providing AI features, which most users get for free, has risen, and the company has delayed several product launches.

2. 2

   Canva told investors it expects revenue growth of 20%, down from 30%, and some investors valued the company lower.

3. 3

   The organization is shifting toward small teams that make their own decisions, and Sydney has been chosen as the hub for core product development.

4. 4

   Departing employees will receive at least six months of salary and one year of health insurance, and people preparing to start their own companies can receive up to $10,000 in support.

Why it matters

It shows that the cost of providing AI features to many people can directly affect a company's growth and the lives of its employees.