Canva Begins First-Ever Layoffs After AI Product Rollout Stumbles

Canva announced internally on Tuesday that it would begin its first layoffs since the company was founded in 2013. According to Sina Finance, citing The Australian Financial Review, 1,271 employees—22% of the workforce—face role changes, transfers to other locations, or dismissal; the newspaper also reported that Canva's monthly active users were down 12 million from a year earlier amid intensifying competition from AI image-generation models and style-code rivals. The Information previously reported that Canva cut its revenue growth forecast for this year from 30% to 20% in August. The company has struggled with the high operating costs of new AI products on its design platform, while worrying that AI image tools could erode its business. CEO and co-founder Melanie Perkins said the company was streamlining management layers and combining duplicate responsibilities to ensure teams had the skills and experience needed for its next stage of growth.