Canva Cuts 22% of Staff, 1,271 People Affected, as Growth Slows for First Time in a Decade

Canva, the online design platform used by hundreds of millions of people, is laying off 22% of its workforce, or 1,271 employees, as it confronts slowing growth and rising competition from AI tools.

In a note to staff, co-founder and chief executive Melanie Perkins said the company had grown remarkably over 13 years but had to change, describing 2026 as its hardest year and confirming that growth had slowed for the first time in a decade.

What is changing

• Canva is merging its product, growth and platform teams to cut down on hand-offs and communication friction.
• It will reduce narrow specialisation, so employees may take on broader responsibilities.
• The company is shifting to hybrid work, asking staff to come into an office a few days a week.

Why now

Canva has been building its own AI models to lower costs and depend less on outside providers, but it still had to cut its revenue growth forecast from 30% to 20% because of ballooning AI expenses. Early investors marked its valuation down to about $35 billion earlier this year.

It also faces new rivals: AI start-ups and general chatbots such as ChatGPT and Gemini can now generate posters and presentations in seconds, eating into what has been Canva’s core business.

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Sources

• TechCrunch — Canva lays off over 1,200 people amid slowing growth