Canva restructures amid slowing growth, impacting over 1200 employees

Canva is implementing a major organizational overhaul, potentially affecting up to 1271 staff members, as CEO Melanie Perkins announced. The restructuring involves significant changes, including role modifications or relocations to centralized hubs, as the company addresses a slowdown in growth. The Australian design platform, which boasts over 265 million monthly active users, saw its growth decelerate this year. In August, Canva lowered its revenue growth forecast from 30 percent to 20 percent, following a 38 percent growth rate in the previous financial year. The company also reduced its internal valuation by $7.9 billion, from $38.9 billion to $31 billion, a move mirrored by two backers who cut their valuation by 17 percent. Perkins noted that the rising cost of AI implementation was a key factor in the revised projections, despite strong demand for its AI products. The restructuring will see Sydney become the primary base for many product teams, and hybrid workers are expected to be in the office two to three days weekly starting in January. Laid-off employees will receive six months' salary, their work MacBook, and support including one-on-one coaching and a year of LinkedIn Premium access. Furthermore, Canva is launching a Collective Fund offering $10,000 grants for new ventures, with applications closing on December 14.