Australian-founded graphic design company Canva has announced a major organizational restructuring that will affect 22% of its workers, including job cuts.
The announcement made by Canva co-founder and Chief Executive Officer Melanie Perkins stated that 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.
Perkins described the decision as the most difficult moment in the company’s 13-year history, acknowledging that the changes would have significant consequences for employees, their families and colleagues.
The “incredibly hard decision” meant “significant changes. For some people, this will mean changes to their roles or being asked to relocate to centralized hubs. Sadly, it will also mean saying goodbye to teammates and friends who have helped build Canva into what it is today, Perkins said in statement.
The company, has staff in 37 countries, said Sydney would become the “primary home” for more of its product teams and that as of next year hybrid workers would be expected to spend two to three days in the office.
She explained that the rapid transformation of technology was changing to what people could create, how they created it and what they expected from the digital products they used.
According to the CEO, Canva had spent considerable time examining different ways to prepare the business for its next stage of development.
Canva also reportedly cut its own internal valuation amid soaring AI expenses related to the rollout of new products.
“New technology is transforming what people can create, how they create it, and what they expect from the products they use,” Perkins wrote.
The company now intends to fundamentally reconsider how it operates, with a renewed focus on efficiency innovation, accountability and smaller, more independent teams.
The company offers a variety of templates and tools to help users without technical skills or a design background to create a range of professional-looking graphics and presentations, from wedding invitations to business pitch decks.