SYDNEY—Australian graphic design platform Canva announced it will lay off approximately 1,200 employees, representing 22 percent of its global workforce, as the company confronts what executives describe as its hardest year yet. The Sydney-based firm, valued at roughly $40 billion in 2021, confirmed the cuts affect staff across multiple departments and regions. Chief executive and co-founder Melanie Perkins said the decision was necessary to navigate a slowing growth environment and to refocus resources on core product development and artificial intelligence initiatives. Affected employees will receive severance packages, extended healthcare benefits, and job placement support, the company said.
The layoffs mark a significant reversal for Canva, which had expanded aggressively during the pandemic-driven surge in remote work and digital content creation. The company joins a broader wave of technology sector downsizing, as firms across the United States, Europe, and Asia recalibrate headcount amid tighter capital markets and softer consumer spending. Analysts note that Canva faces intensifying competition from Adobe and emerging AI-powered design tools, pressuring its subscription growth model. Perkins acknowledged that the company had hired ahead of its revenue trajectory and pledged to maintain investment in long-term priorities despite the reductions. Canva has not disclosed the financial impact of the restructuring or whether further cost-cutting measures are planned.
Independent reporting synthesized from primary wires and global correspondents.