Online design firm Canva has announced it is cutting more than 1,200 jobs as users flock to “new technology” like AI. The Australian company’s CEO, Melanie Perkins, made the “incredibly hard” announcement on Wednesday, November 4, confirming that more than a fifth of staff will either be made redundant or need to change roles to stay at the company.
AI reshapes Canva's business
Canva rose to prominence as a free-to-use online design tool in the 2010s, popular with amateurs and professionals who subscribed to the “premium” features. However, improvements in AI have allowed casual users to create posters, greetings cards, and edit photos in a matter of seconds completely free of charge.
Ms Perkins recognised the rise of “new technology” led to the “hardest year yet” for the company’s growth. The co-founder also apologised for the overhaul in a statement: “This is without doubt the hardest moment in our thirteen-year history. Behind every decision is someone we care deeply about, and I know the consequences will be very real for those directly affected, their families, friends and teammates.
“I’m deeply sorry for the pain and disruption this will cause for everyone affected. While nothing can make this news easier, we will do everything we possibly can to support everyone affected.”
Support package and structural changes
Those who do stay at the firm will be expected to work in the office more often. The business, founded in Perth, Western Australia, soon expanded to 37 sites worldwide, and has now designated its Sydney office as its headquarters. Other changes include merging departments.
The up to 1,271 staff made redundant will be given “at least six months salary” as a severance package, will be allowed to keep company laptops, can claim on business health insurance for another year, receive career coaching, and apply for a US$10,000 start-up fund.
Broader tech sector restructures
Canva’s redundancies is just the latest major Aussie tech firm to undergo a restructure. Earlier this year, Atlassian — sponsor of the Williams F1 team and owner of Trello — announced 1,600 jobs were at risk.
