DST News: Canva, one of Australia’s best-known start-ups, has announced a major restructuring that will affect 22% of its workforce, including job losses.
Co-founder and chief executive Melanie Perkins described the move as “without doubt the hardest moment in our thirteen-year history”. She said 1,271 employees would either lose their jobs, be asked to relocate or move into different roles.
The company’s valuation has reportedly fallen over the past year amid concerns about the impact of artificial intelligence (AI) on its business and the rising costs of integrating the technology into its platforms.
“It’s been our hardest year yet, and as we shared earlier this year, our growth has slowed for the first time in a decade,” Perkins wrote in a message to staff.
She described the decision as “incredibly hard” and said it would involve “significant changes”.
“For some people, this will mean changes to their roles or being asked to relocate to centralised hubs. Sadly, it will also mean saying goodbye to teammates and friends who have helped build Canva into what it is today,” she said.
Canva, which has employees in 37 countries, said Sydney would become the “primary home” for more of its product teams. From next year, employees working under hybrid arrangements will be expected to spend two to three days a week in the office.
Earlier this year, two of the company’s investors, Blackbird Ventures and Airtree, reportedly reduced its valuation from A$60bn ($41.8bn; £31.1bn) at the end of last year to about A$49bn.
Canva has also reportedly lowered its own internal valuation amid rising AI-related expenses as it rolls out new products.
“New technology is transforming what people can create, how they create it, and what they expect from the products they use,” Perkins wrote in her message on Wednesday.
Perkins left university at the age of 19 to establish her first business before launching Canva in 2013.
The company provides a range of templates and tools that allow people without technical expertise or a design background to create professional-looking graphics and presentations, from wedding invitations to business pitch decks.
Source: BBC
