Canva announces major job cuts after 'our hardest year yet'
Design platform Canva has announced a major restructuring that includes cutting 22% of its workforce, or 1,271 employees. CEO Melanie Perkins cited a slowing growth rate and the high costs associated with integrating artificial intelligence into their products as primary drivers for the decision.
Why it matters
This reflects a broader trend in the tech industry where companies are struggling to balance the high capital expenditure of AI development with slowing revenue growth.
Share Save Add as preferred on Google Helen Livingstone Sydney Getty Canva co-founder Melanie Perkins says this year has been "our hardest" yet Canva, one of Australia's best known start-ups, has announced a shake up of the business that will affect 22% of its workers, including job cuts.
In what was "without doubt the hardest moment in our thirteen-year history" co-founder and CEO Melanie Perkins said 1,271 people would either lose their jobs, be asked to relocate or change roles.
The firm's value has reportedly dropped in the past year over concerns about the impact of artificial intelligence (AI) on its business as well as the cost of incorporating the technology into its platforms.
It had been "our hardest year yet, and as we shared earlier this year, our growth has slowed for the first time in a decade," Perkins wrote to staff.
Headlinne story · 5 newsrooms
Canva Restructures Operations and Cuts Staff in Major Corporate Overhaul
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