Business/Alive News: Australian design platform Canva has announced a major restructuring that will affect at least 1,271 employees, or more than 22% of its workforce. The changes include job cuts, role changes and employee relocations as the company adjusts to the growing use of artificial intelligence (AI).
Canva CEO Melanie Perkins described the decision as the most difficult period in the company’s 13-year history. In a message to employees, she said the company’s growth had slowed for the first time in a decade. She added that new technology was changing how people create and what they expect from digital tools.
AI Changing the Technology Industry
The growing use of AI tools, including Anthropic’s Claude, is changing the software industry. These tools allow people to complete tasks that previously required specialised software and technical skills. As a result, companies are reviewing their workforce requirements and business models.
Perkins said Canva needs to become a simpler organisation with smaller teams and fewer specialised roles.
Changes to Office Working
Sydney will become the main base for Canva’s product teams. From January, most employees working in hybrid roles will be expected to attend the office two to three days a week.
IPO Plans and Company Valuation
Canva is also preparing for a possible stock market listing through an initial public offering (IPO). The company’s valuation reached $40 billion in 2021 before falling to around $26 billion during the technology stock sell-off in 2022. Its valuation later recovered, although the impact of the latest changes remains uncertain.
Founded in 2013 by Melanie Perkins, Cliff Obrecht and Cameron Adams, Canva made online graphic design easier for millions of users. Its latest restructuring highlights how AI is putting pressure on established software companies.
