US — TechCrunch
Canva lays off over 1,200 people amid slowing growth
Software1 min read
Canva, a design software company, is cutting 22% of its staff, about 1,271 people, as its growth slows. The company says it must change to keep growing.
What happened
Canva is laying off 1,271 employees, which is 22% of its workforce. Co-founder and CEO Melanie Perkins told staff in a note that the company needs to change because its growth has slowed. She said this is the company's hardest year yet.
Key numbers
- 1,271 people are being cut, about 22% of staff.
- Canva's growth has slowed for the first time in a decade.
- Canva cut its revenue growth forecast to 20%, down from 30%.
- Early investors cut Canva's valuation to about $35 billion earlier this year.
- Canva has been around for 13 years.
What Canva is changing
Canva is reorganizing its teams. It is merging its product, growth and platform teams so they can talk more easily. It is also cutting back on narrow job roles, so workers may take on more tasks. The company is moving to hybrid work, asking people to come to the office a few days each week. Canva has also been building its own AI models to lower costs and rely less on outside AI tools, but AI costs have still grown a lot.
Why it matters
Canva is a well-known design tool, and its struggles show how hard it is for tech companies to grow when costs are rising. Competition is also getting tougher. AI startups and general chatbots like ChatGPT and Gemini can now make posters and presentations, so people may not need Canva for those jobs.
What to watch
- Whether Canva's growth picks up again after the changes.
- How the new team structure and office rules affect workers.
- Whether Canva can keep AI costs under control.
- How Canva competes with AI tools like ChatGPT and Gemini.
Glossary
- Canva
- A company that makes an online design tool for posters, presentations and other graphics.
- AI models
- Computer programs trained on lots of data so they can do tasks like writing or making images.