Canva’s AI-driven job cuts send ripples through the tech industry

The World Economic Forum has already predicted that, by 2030, nearly 40% of today’s skill sets will be transformed or obsolete. Canva’s layoffs show that this timeline may be accelerating.
Canva has cut 10 of its 12 technical writers just months after encouraging employees to integrate artificial intelligence into their workflows. The decision has raised questions about the implications of AI-driven job restructuring, not just within Canva but across the global tech sector.
For years, AI has been heralded as a game-changer, promising to augment – rather than replace – human capabilities. It would take the drudgery out of work, not take away work altogether. But the latest round of layoffs at the design software giant has cast a shadow over that narrative.
The job cuts have reportedly “unsettled” Canva’s workforce.
AI is coming for jobs, and Canva just proved it
Now, we’re seeing the truth play out in real time. AI is not just assisting but displacing. Canva’s recent layoffs make that crystal clear: AI can do the job now.
The company insists this is just an evolution of its documentation strategy, with engineers taking greater control of technical content creation, supported by AI. More than just a workflow adjustment, it’s a stark reminder that no knowledge worker’s job is truly safe from automation.
Just nine months earlier, Canva’s leadership was singing praises about AI and urging employees to integrate it into their work. Staff complied and embedded AI tools into their daily routines. Many believed this was about making them more efficient, not making them obsolete. Then, the axe fell.
To add insult to injury, some of those now out of a job say they were reassured AI wouldn’t lead to layoffs. Yet here they are, unemployed, watching AI systems take over their former responsibilities.
Canva, valued at roughly A$49 billion, is offering severance and career coaching. But the bigger question remains: if AI is this good at writing documentation, how long before it replaces writers in other industries too?
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A warning shot for the entire workforce
Tech giants such as Google, Meta, and Amazon have all trimmed their workforces in response to automation. But in Australia, companies have been slow to make similar cuts – until now.
Canva may have just set a precedent. The company is doubling down on AI-powered features, including text-to-image generation and automated design tools. At the same time, it’s positioning itself for an eventual Nasdaq listing, having brought in former Zoom CFO Kelly Steckelberg to help steer the process.
Efficiency plays well with investors, but at what cost to employees?
Canva’s leadership insists the job cuts weren’t about cutting costs. But for those now out of work, that’s a hard sell. Many employees feel betrayed, and for good reason: they did what management asked, only to have the very technology they embraced make them redundant.
Phil Sim, CEO of PR firm Influencing, didn’t mince words: “If you’re rolling out AI/automation with the intent of replacing people, don’t get their buy-in and then use that against them. Honesty and transparency are the very least that everyone can expect as we face this period of what I think will be unprecedented societal disruption.”
The reaction from communications professionals has been particularly strong.
Caroline Tunnell Jones, communications lead at Colonial First State, warned: “If you work in communications – internal, external, or technical – this is your Miranda Priestly ‘cerulean blue’ moment. The trickle-down is coming.”
The AI backlash is building
Yet, with AI dominating content creation, businesses also run the risk of churning out similar sounding output.
Sydney-based communications consultant Sarah Bishop warned of the creeping homogenisation of content: “Anyone who’s feeling overwhelmed with bot-created social content right now can attest to the risks in allowing AI to vanilla-out our conversations. Words are rapidly losing meaning. We really do need our human touch to keep things real.”
And then there’s the bigger picture. Dr. Michael Mustafa, associate professor of entrepreneurship and management at the University of Nottingham Malaysia, asked the question that many are now grappling with: “AI was supposed to make jobs easier. However, it may actually be making [workers] redundant?”
According to data from layoffs.fyi, AI-driven job cuts are accelerating across the tech industry. The pattern suggests that, as AI systems improve, companies are seizing the opportunity to streamline operations – even at the expense of their workforce.
Also Read: Tech titan Guy Kawasaki on growth, grit and grace
The writing is on the wall. The adoption of AI is already shaping business decisions that directly affect people’s livelihoods. For businesses, the challenge is to integrate AI in a way that maintains trust. For employees, the challenge is even greater: future-proofing your career when tech is moving faster than company assurances.
The World Economic Forum has already predicted that, by 2030, nearly 40% of today’s skill sets will be transformed or obsolete. Canva’s layoffs show that timeline may be accelerating.
Companies can’t afford to be naive about how AI adoption impacts their workforce. And workers can’t afford to assume their jobs are safe. If Canva’s move is any indication, the AI-driven job disruption is only just beginning.