The company is overhauling its workforce strategy by shifting more product teams to its primary base in Sydney and requiring hybrid staff across 37 countries to work from offices two to three days weekly next year. These adjustments will alter the roles, locations, or employment status of more than a thousand staff members. The changes follow valuation markdowns by major venture backers Blackbird Ventures and Airtree from A$60 billion to approximately A$49 billion. Canva has also lowered its own internal valuation while rolling out new AI-driven tools.
Key points
Rising artificial intelligence costs and investor concerns have contributed to a signific…: Rising artificial intelligence costs and investor concerns have contributed to a significant decline in the firm's valuation.
Product development is being consolidated into centralized hubs, with Sydney serving as t…: Product development is being consolidated into centralized hubs, with Sydney serving as the primary base for core teams.
Management is tightening operational efficiency after experiencing its first slowdown in…: Management is tightening operational efficiency after experiencing its first slowdown in business growth in over a decade.
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Canva, one of Australia's best known start-ups, has announced a shake up of the business that will affect 22% of its workers, including job cuts.
In what was "without doubt the hardest moment in our thirteen-year history" co-founder and CEO Melanie Perkins said 1,271 people would either lose their jobs, be asked to relocate or change roles.
The firm's value has reportedly dropped in the past year over concerns about the impact of artificial intelligence (AI) on its business as well as the cost of incorporating the technology into its platforms.
It had 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 to staff.
The "incredibly hard decision" meant "significant changes," Perkins said.
"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."
The company, which has staff in 37 countries, said Sydney…
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