Canva to cut, move or reassign 1,271 staff in first layoffs
Chief executive Melanie Perkins called the overhaul the hardest moment in Canva's 13-year history as the company joins a wave of software-sector cuts.
Summary
In brief
- Canva's restructure affects 1,271 people, 22% of its global workforce
- Departing Canva staff get at least six months of salary and 12 months of healthcare
- Canva did not mention AI in its announcement, unlike Atlassian, Block and WiseTech
Canva will cut, relocate or reassign 1,271 people, 22% of its global workforce, in its first job cuts since it was founded in 2013, the company told staff on Wednesday.
The restructure adds one of Australia's most successful startups, long seen as a candidate for a Nasdaq listing, to a wave of software-sector cuts that includes 1,600 redundancies at Atlassian and job losses at Block and WiseTech Global, The Guardian's report showed. Software companies are competing with cheaper AI rivals while adopting AI tools themselves.
Chief executive Melanie Perkins called the restructure “without doubt the hardest moment in our thirteen-year history” in an email to staff. “For some people, this will mean changes to their roles or being asked to relocate to centralised hubs,” she wrote.
Canva told staff it is simplifying management layers, consolidating overlapping responsibilities and bringing more teams together in person, according to The Information's report. Perkins did not say how many of the 1,271 people will lose their jobs rather than move or change roles.
Employees who leave will receive at least six months of salary and keep healthcare coverage for a further 12 months in countries where staff get that benefit. They can keep their laptops and apply for $10,000 grants (A$14,000) to start their own ventures.
Unlike Atlassian, Block and WiseTech, Canva did not mention AI in its restructure announcement, The Guardian reported. Bloomberg's report described the overhaul as part of a structural reckoning that artificial intelligence is forcing on the company. Established software makers have rejected talk of a “SaaS-pocalypse,” the idea that AI makes specialized software redundant, but many have overhauled their business models in response.
Canva was founded in Perth in 2013 by Perkins, Cliff Obrecht and Cameron Adams and is headquartered in Sydney. Its browser-based tool lets users create presentations, social media posts and other graphics from templates.