One of Australia’s most well-known start-ups, Canva, has announced a reorganisation that would impact 22% of its employees, including layoffs. According to co-founder and CEO Melanie Perkins, it was “without doubt the hardest moment in our thirteen-year history” and 1,271 employees will either lose their jobs, be asked to relocate, or change responsibilities. Concerns over how artificial intelligence (AI) would affect the company’s operations and the expense of integrating the technology into its platforms have reportedly caused the firm’s value to decline in the last year.
Perkins wrote to employees that 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.” According to Perkins, the “incredibly hard decision” resulted in “significant changes.”For some, this will entail being asked to move to centralised hubs or having their roles changed. Unfortunately, it will also mean bidding farewell to friends and comrades who have contributed to Canva’s current state.
The company, which employs people in 37 countries, announced that starting next year, hybrid workers will be expected to spend two to three days in the office and that Sydney would become the “primary home” for more of its product teams. Blackbird Ventures and Airtree, two of its backers, reportedly reduced its valuation earlier this year from A$60 billion ($41.8 billion; £31.1 billion) at the end of the previous year to roughly A$49 billion.
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