Canva to Cut 1,271 Jobs as Slower Growth and Rising AI Costs Reshape the Business
Canva is reducing its workforce by 22%, cutting 1,271 jobs as the design software company responds to slowing growth, rising artificial intelligence costs, and a more competitive creative tools market.
In a message to employees, co-founder and CEO Melanie Perkins said Canva has reached a major turning point after more than a decade of rapid expansion. She acknowledged the company’s impressive rise from a pitch deck idea to a global design platform used by hundreds of millions of people, but said past success does not guarantee future momentum.
According to Perkins, Canva is facing its most difficult year so far. The company’s growth has slowed for the first time in 10 years, forcing leadership to rethink how the business operates and how teams are structured.
As part of the restructuring, Canva is merging its product, growth, and platform teams. The goal is to reduce communication barriers, speed up decision-making, and make the company more efficient. Canva is also moving away from deep subspecialization, meaning some employees may be expected to take on broader responsibilities across different areas of the business.
The company is also shifting further toward a hybrid work model. Employees will be asked to spend a few days each week in the office, a change Canva believes will improve collaboration as it navigates its next stage of growth.
Artificial intelligence is playing a major role in Canva’s changing strategy. The company has been developing its own AI models to lower costs and reduce its dependence on third-party AI providers. However, the cost of supporting AI-powered features remains significant.
Earlier this year, Canva lowered its revenue growth forecast from 30% to 20%, partly due to rising AI expenses. The slowdown also contributed to a valuation cut by some early investors, bringing Canva’s estimated value to around $35 billion.
Canva’s challenges come at a time when competition in digital design is becoming more intense. AI startups and popular general-purpose tools such as ChatGPT and Gemini now offer image generation and creative features that make it easier for users to create posters, presentations, social media graphics, and marketing materials without relying on traditional design platforms.
For years, Canva has been known for making design simple and accessible to non-designers. But as AI tools become more capable, the company must work harder to stay ahead and prove that its platform remains essential for individuals, businesses, educators, and content creators.
The layoffs mark a significant moment for Canva as it adjusts to a tougher market environment. While the company remains one of the most recognizable names in online design software, its latest move shows that even fast-growing technology firms are under pressure to control costs, streamline operations, and adapt quickly to the rise of AI.
