Canva Announces Major Job Cuts, Relocations Amidst Valuation Drop
Design giant Canva is set to cut or relocate over 1,200 jobs as part of a significant restructuring, following a reduction in the company's valuation.
Canva, the renowned design platform, has announced sweeping changes to its workforce, with approximately 1,271 employees set to be affected by job cuts or role changes, representing a substantial 22% of its total staff 123. This move comes as the company faces a revaluation, with two of its key investors, Blackbird Ventures and Airtree, reducing Canva's worth from roughly $41.8 billion to around $31.1 billion 1.
The decision to downsize is attributed to increased expenses linked to advancements in AI technology, which have impacted Canva's internal valuation 1. This marks what is reportedly the most challenging period for the company since its inception 13 years ago 2.
As part of the restructuring, Sydney will see a greater concentration of Canva’s product teams, solidifying its position as a central hub within the company 13. Additionally, hybrid workers will be required to spend 2 to 3 days per week in the office starting next year, a change aimed at enhancing collaboration and productivity 13.
Departing employees will receive generous severance packages, including at least six months of salary and extended healthcare benefits for an additional year in relevant regions 23. These measures reflect Canva’s commitment to supporting its workforce during this transitional phase.
What we know
- Canva announced job cuts affecting 22% of its workforce 123
- Approximately 1,271 employees will be affected by job cuts or role changes 123
- Sydney will become the primary location for more of Canva’s product teams 13
- Hybrid workers will need to spend 2 to 3 days per week in the office starting next year 13
- Departing employees will receive at least six months of salary and health care benefits for an additional year in applicable regions 23
- Two of Canva's investors reduced the company's valuation from approximately $41.8 billion to around $31.1 billion 1
- Canva's internal valuation was lowered due to increased expenses related to AI technology 1
- The job cuts represent the most challenging period for Canva since its founding 13 years ago 2
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Trust Score report
- confirmed
Canva announced job cuts affecting 22% of its workforce.
94% · supported by 3 - confirmed
Approximately 1,271 employees will be affected by the job cuts or role changes.
94% · supported by 3 - confirmed
Sydney will become the primary location for more of Canva’s product teams.
87% · supported by 2 - confirmed
Hybrid workers will need to spend 2 to 3 days per week in the office starting next year.
87% · supported by 2 - confirmed
Departing employees will receive at least six months of salary and health care benefits for an additional year in applicable regions.
86% · supported by 2 - likely
Two of Canva's investors, Blackbird Ventures and Airtree, reduced the company's valuation from approximately $41.8 billion to around $31.1 billion.
73% · supported by 1 - likely
Canva's internal valuation was lowered due to increased expenses related to AI technology.
73% · supported by 1 - likely
The job cuts represent the most challenging period for Canva since its founding 13 years ago.
72% · supported by 1
