Canva Cuts 1,271 Jobs as AI Costs Slow Growth
Canva is cutting 1,271 jobs, or 22% of staff, as growth slows, AI costs rise, its forecast falls to 20%, and its valuation drops to about $35 billion.
Summary
Canva said on November 4, 2026, that it is cutting 1,271 employees, or 22% of its workforce, after growth slowed for the first time in a decade. Co-founder and CEO Melanie Perkins called it Canva’s hardest year yet, after 13 years of expansion into a platform used by hundreds of millions of people.
Canva is merging its product, growth and platform teams to reduce communication friction, limiting subspecialisation so employees assume broader responsibilities, and shifting to hybrid work with several office days each week. Although Canva is developing its own AI models to lower costs and dependence on third parties, ballooning AI expenses forced it to reduce its revenue growth forecast from 30% to 20%. Early investors cut Canva’s valuation to about $35 billion earlier in 2026. AI startups and general-purpose chatbots ChatGPT and Gemini add pressure by generating images for posters and presentations.
Positives
- Canva’s platform serves hundreds of millions of people after 13 years of growth.
- Canva is developing proprietary AI models to reduce costs and dependence on third-party providers.
- Product, growth and platform teams are being merged to reduce communication friction.
- Broader employee responsibilities could reduce organizational subspecialisation.
Risks & concerns
- Canva is eliminating 1,271 jobs, equal to 22% of its workforce.
- Growth slowed for the first time in a decade during what Melanie Perkins called Canva’s hardest year.
- Ballooning AI costs forced Canva to cut its revenue growth forecast from 30% to 20%.
- Early investors reduced Canva’s valuation to about $35 billion earlier in 2026.
- ChatGPT, Gemini and AI startups increasingly compete with Canva in poster and presentation creation.
- Hybrid work will require employees to attend an office several days each week.