Business & Finance

Canva to Cut 22% of Workforce Amid AI‑Driven Valuation Decline

By Today News Hours Editorial Desk

Canva, the Australian start‑up founded in 2013, announced that 22% of its employees will be affected by job cuts, relocations or role changes. Co‑founder and CEO Melanie Perkins said the decision was “without doubt the hardest moment in our thirteen‑year history.” The company will see 1,271 people lose their jobs, be asked to relocate or change roles. Perkins explained that Canva’s valuation has fallen in the past year amid concerns about the impact of artificial intelligence on its business and the cost of integrating the technology into its platforms. She noted that growth had slowed for the first time in a decade. The company, which has staff in 37 countries, will make Sydney the primary hub for more of its product teams, and hybrid workers will be expected to spend two to three days in the office next year. Earlier this year, backers Blackbird Ventures and Airtree downgraded Canva’s valuation from A$60 bn ($41.8 bn; £31.1 bn) to about A$49 bn. Canva also reduced its own internal valuation amid rising AI expenses related to new product roll‑outs. Perkins added that new technology is changing what people can create, how they create it, and what they expect from the products they use. Canva offers templates and tools that allow users without technical skills or a design background to create professional‑looking graphics and presentations, from wedding invitations to business pitch decks.