Canva Closes Prague Office as More Than 1,200 Jobs Are Cut Worldwide
Prague Morning
Canva is shutting down its Prague office, leaving only six employees from a workforce of around 50 as part of a company-wide restructuring affecting more than 1,200 people.
According to a former employee familiar with the situation, staff first received a company-wide email from Canva CEO Melanie Perkins outlining major changes.
Around 20 minutes later, employees whose positions were being eliminated received individual notifications.
Those affected were reportedly given about a week to collect their belongings. Access to most internal work systems was cut immediately, with employees retaining access only to services such as Slack and email.
The Prague closure comes during what has been described as the largest restructuring in Canva’s history and the company’s first major round of mass layoffs.
The changes are expected to affect 1,271 employees, equivalent to roughly 22 percent of the company’s workforce.
Prague Staff Point to Structure and AI Costs
A former member of the Prague office said two factors appear to have contributed to the decision.
The first is the company’s organizational structure. Responsibilities were divided across several layers, making communication and decision-making more difficult. The problem was further complicated by the ten- to eleven-hour time difference between Central Europe and Sydney.
The second issue, according to the former employee, involves the cost of artificial intelligence.
Canva has invested heavily in AI tools and technology, initially facing significant costs associated with computing power. Over the past month, the company has begun introducing its own models, although it remains unclear how much this could reduce the cost of processing graphics and other AI-related tasks.
The company has integrated tools and services linked to platforms such as ChatGPT and Claude. At the same time, users are increasingly able to generate images, designs and other visual content directly through competing AI systems without relying on Canva’s traditional platform.
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