Canva announces major job cuts after 'our hardest year yet'
Australian startup Canva has announced a major restructuring that includes laying off 22% of its workforce. The company cited a difficult year, slowing growth, and high costs associated with integrating artificial intelligence into its platform.
Why it matters
This highlights the financial strain even successful tech companies face when pivoting to AI, reflecting broader industry challenges in balancing innovation costs with profitability.
Image source, Getty Image caption, 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.
The "incredibly hard decision" meant "significant changes," Perkins said.
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