Canva is laying off or redeploying more than 1,200 employees, representing 22% of its workforce worldwide, as part of a major restructuring that includes dismissing staff involved in building the Australian design platform. UNN reports this, citing The Guardian.
Details
These changes reflect a trend in the technology sector, where software companies are struggling to remain competitive with cheaper rivals that use artificial intelligence while also actively rolling out their own AI tools, the publication notes.
Canva CEO Melanie Perkins said in an email to employees on Wednesday, November 4, that the restructuring "is unquestionably the most difficult moment in our 13-year history."
"For some, this will mean changing their roles or being asked to relocate to centralized offices," she said. "Unfortunately, it will also mean saying goodbye to colleagues and friends who helped build Canva into what it is today."
According to the company, the restructuring will affect 1,271 people, as it seeks to "simplify layers" and "bring more teams together to work in person."
"We understand that relocating is a significant decision for those who have to make it, and we are committed to making this process as smooth as possible by providing comprehensive support," Perkins said, without specifying the exact number of employees who are being laid off.
Those leaving Canva will receive at least six months' salary and retain health insurance for another 12 months in countries where employees receive this benefit. They may also keep their laptops.
Those leaving can also apply for grants of US$10,000 to start their own businesses.
The graphic design company is one of Australia's most successful startups and has long been viewed as a candidate for a major stock listing on Nasdaq.
But it has now intensified a wave of restructuring in the technology sector that includes the elimination of 1,600 jobs at Atlassian, as well as layoffs at Block, the owner of Afterpay, and at WiseTech Global, another software company.
Although established software companies have dismissed the threat of a SaaS apocalypse — a term used to describe the idea that artificial intelligence will become so advanced that specialized software will become obsolete — many of them have responded by revising their business models or actively deploying AI tools.
Unlike Atlassian, Block and WiseTech, Canva did not mention AI in its restructuring announcement.