News
Canva to restructure 22% of its workforce, CEO calls it the hardest moment in company history
Canva says its restructuring will affect about 1,270 employees, or 22% of staff. The company did not name AI directly, pointing instead to slowing growth and new technology.
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Canva, the Australian graphic design platform, has announced a restructuring that will affect about 1,270 people worldwide. That is 22% of its global workforce. According to Australia's ABC News, the changes include layoffs, role changes and relocations.
CEO and co-founder Melanie Perkins announced the news to staff in a memo quoted by ABC News. She called it the hardest moment in the company's 13-year history.
What the company announced
The phrase "affected by the changes" is broader than layoffs alone. It covers losing a job, changing roles and being asked to relocate. ABC does not say how many employees fall into each group.
The company said it had explored a range of alternatives and reached the difficult conclusion that small changes would not be enough. Perkins argued that small changes would not prepare the company for its next phase. She added that the company needs to rebuild itself by returning to small, empowered teams.
We need to re-found Canva, getting back to our roots of small, empowered teams with the freedom to make decisions, take ownership and focus on what matters most for our community. - Melanie Perkins, co-founder and CEO of Canva (memo to staff, quoted by ABC News)
Slower growth and new technology
According to Perkins, the company's growth slowed for the first time in a decade. Canva also says new technology is changing how people create and use products.
Artificial intelligence does not appear in the announcement explicitly. ABC notes that Canva did not mention AI. The company says only that new technology is changing how people create and use products.
Package for departing staff
Departing employees will receive at least six months' salary and health support. For some recently hired staff, the company has removed the one-year equity vesting cliff. It is also setting up a fund of $10,000 grants for people who want to start a business or pursue a community project.
Industry backdrop
ABC points out that Atlassian announced 1,600 job cuts this year, including about 500 in Australia, and said AI would allow it to reduce headcount and redirect resources. ABC also reports that Block, which owns Afterpay, announced major workforce cuts, and its sentence also mentions Wise Tech Global.
The source does not say whether the restructuring will affect Canva users, including those in Poland, or the company's product plans. Further statements from the company on the matter will be worth following.
