Adobe Challenger Bets Economic Downturn Will Propel Sales

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Adobe Challenger Bets Economic Downturn Will Propel Sales
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As tech layoffs mount, Canva hopes that businesses seeking to cut costs will switch to its software from more expensive ones such as Adobe’s Creative Cloud

Tech companies saw exceptional growth in revenue and employee head counts through the pandemic. But now, they are cutting thousands of jobs. WSJ explains the reasons for the industry’s massive layoffs.SYDNEY—As layoffs in the tech sector mount, one highly valued startup is attempting to persuade businesses that its products offer better value when many are seeking to cut costs.

Australian design-software startup Canva Pty. Ltd. hopes businesses will switch from more expensive products such as Adobe Inc.’s Creative Cloud. The risk is that potential customers, fearing a fall in revenue as the economy softens, will curb spending or even use more-limited design software available free.

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