Canva Lays Off 1,271 Employees Amid Slowing Growth and Rising AI Costs
Design software company Canva is reducing its workforce by approximately 22%, cutting 1,271 positions to address a significant slowdown in growth. CEO Melanie Perkins noted that the company's first decade of rapid expansion has transitioned into a more challenging period, necessitating an organizational reshuffle. To improve efficiency, Canva is merging its product, growth, and platform teams while reducing employee subspecialization. The layoffs come as the company grapples with ballooning costs associated with artificial intelligence. Consequently, Canva has lowered its revenue growth forecast from 30% to 20%. The firm also faces intensified competition from AI-driven tools like ChatGPT and Gemini. These financial pressures previously led early investors to slash Canva's valuation to approximately $35 billion earlier this year.
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Topics: AI costs corporate restructuring growth slowdown tech layoffs