Canva, the Australian design software company, has announced a major restructuring affecting 22% of its global workforce, or 1,271 employees, as part of a broader organizational overhaul. The changes include job cuts, role changes, and relocations, with Sydney designated as the primary hub for product teams. The announcement was made in a company-wide memo by co-founder and CEO Melanie Perkins, who described the move as the hardest moment in Canva’s 13-year history.
Core developments
- 1,271 employees (22% of Canva’s workforce) will be impacted by the restructuring, which includes layoffs, role modifications, and potential relocations.
- The company cited slowing growth—its first in a decade—as a key driver, alongside the need to adapt to rapid technological changes, including artificial intelligence (AI).
Support and transition measures
Canva outlined a comprehensive support package for affected employees, including:
- At least six months’ salary, regardless of location, with additional equity protections for short-tenured staff.
- 12 months of healthcare coverage and access to Canva’s Employee Assistance Program (EAP), covering family members.
- One-on-one career coaching, interview preparation, and a year of LinkedIn Premium.
- $10,000 grants through the new Canva Collective Fund for departing employees pursuing entrepreneurship or community projects.
- Retention of Canva-issued MacBooks for departing staff.
Rationale behind the restructuring
Perkins emphasized that the changes were necessary to prepare Canva for its next phase of growth, citing declining growth forecasts and increased competition from AI tools. The company’s 2026 revenue growth target was reduced from 30% to 20% in August, reflecting broader challenges in the tech sector.
Operational changes
- Hybrid work policies will be adjusted, with most employees expected to work two to three days in the office weekly starting January.
- Sydney will become the central hub for product teams, consolidating operations from other Australian cities, including Melbourne, Brisbane, Adelaide, and Perth.
- The company operates in 37 countries, and the restructuring will impact teams globally.
Context and industry trends
The announcement follows a broader trend in the tech industry, where companies like Atlassian have also implemented significant job cuts to reallocate resources toward AI and enterprise sales. Canva’s valuation has reportedly dropped from A$60 billion to A$49 billion, reflecting investor concerns over its growth trajectory.
Employee and industry response
While the full extent of job losses remains unspecified, the generosity of Canva’s exit packages has drawn attention, with some praising the company’s commitment to supporting departing staff. The restructuring comes ahead of the holiday season, adding to the emotional and logistical challenges for affected employees and their families.