Canva cuts 22% of its staff as AI costs squeeze growth
Canva is cutting, moving, or changing 1,271 roles and cut its growth forecast to 20% from 30%. AI raised its costs and its competition at the same time.
What happened
Canva is making changes that affect 1,271 people, or 22% of its staff, CEO Melanie Perkins told employees on November 4, 2026. Some people will change roles, some will be asked to move to central hubs, and others will lose their jobs. The BBC, The Verge, and the Guardian all describe that mix of cuts, moves, and role changes.
TechCrunch reported that Canva cut its revenue growth forecast to 20% from 30% because of ballooning AI costs. That cut came even though Canva ships its own AI models to reduce costs and its reliance on outside models. Perkins wrote that growth slowed this year for the first time in a decade.
Canva will merge its Product, Growth, and Platform teams into one product organization, The Verge reported. Sydney becomes the primary home for more product teams. From January, Canva expects most hybrid staff in an office 2 to 3 days a week. Departing staff get at least six months of salary and twelve months of healthcare coverage.
What it means
AI hit Canva from two sides. It raised the cost of running the product, and it gave rivals a cheaper way to do the same job. TechCrunch named ChatGPT and Gemini, whose image tools let people put together posters and presentations. The Guardian described the same pattern across software, with companies fighting cheaper AI rivals while they add AI to their own products.
Canva is not alone this week. Squarespace announced layoffs affecting 19% of its staff the day before, The Verge reported. For software companies, the problem is unit economics. Each AI feature carries a model bill every time a customer uses it. A company that gives AI away inside a flat plan pays for that use out of its own margin.
Why it matters to you
If you run a small business on Canva, the reports describe no change to its product or prices. Your designs, templates, and brand kits stay where they are. The pressure shows up later, in plan prices, usage limits, and which AI features sit behind a higher tier.
Run a simple test this month. Try one routine job, like a flyer or a social post, in an AI tool you already pay for. If ChatGPT or Gemini gets you most of the way, you have a backup and a stronger hand at renewal. Keep your brand files exported so no single tool holds your work.
What to watch
Watch Canva’s pricing and plan pages for new AI credits, usage caps, or tiers. Watch whether more design and website tools follow Squarespace and Canva with cuts. Watch whether Canva’s own models bring its AI costs down, which a better growth forecast will show. Watch the chatbots too. Each new image feature in ChatGPT or Gemini puts more pressure on single-purpose design tools.