Canva to cut 1,271 jobs amid slow growth and AI challenges

Canva, an Australian start-up, is set to reduce its workforce by 1,271 employees, representing 22% of its staff, according to BBC Business.

CEO Melanie Perkins described the past year as the company's hardest in its thirteen-year history, citing slowed growth and challenges related to artificial intelligence (AI).

The company plans significant changes including asking some employees to relocate to centralized hubs, with Sydney becoming the primary location for product teams.

From next year, hybrid workers will be required to spend two to three days in the office, reflecting a shift in work arrangements.

Canva's valuation has reportedly dropped from A$60 billion to about A$49 billion, influenced by concerns over AI's impact and the cost of integrating the technology into its platforms.