From TechCrunch · Ivan Mehta · · 1m 10s
Canva cuts 22% of staff as growth slows
Design software maker Canva is laying off 1,271 people and restructuring teams as its growth rate falls for the first time in a decade.
In brief
Design software maker Canva is laying off 1,271 people and restructuring teams as its growth rate falls for the first time in a decade. Canva laid off 1,271 people, 22% of its workforce, citing slowed growth and rising AI costs that forced the company to cut its revenue forecast from 30% to 20%. Originally reported by…
Canva cuts 1,271 jobs
Design software maker Canva is laying off 1,271 people, representing 22% of its workforce, amid a significant slowdown in growth.
Growth slowed for first time
CEO Melanie Perkins said this has been Canva's hardest year yet, with growth slowing for the first time in a decade.
“our growth has slowed for the first time in a decade”
Restructuring and hybrid work
Canva is merging product, growth and platform teams to reduce communication friction and moving to hybrid work requiring office days weekly.
Revenue forecast cut sharply
Rising AI costs forced Canva to cut its revenue growth forecast to 20% from 30%, leading early investors to reduce the company's valuation to about 35 billion dollars.
Competition from AI tools
Canva faces increasing competition from AI startups and general-purpose chatbots like ChatGPT and Gemini, whose image generation capabilities let users easily create posters and presentations.
The one thing
Canva laid off 1,271 people, 22% of its workforce, citing slowed growth and rising AI costs that forced the company to cut its revenue forecast from 30% to 20%.
