Canva Announces Major Restructuring and Layoffs Affecting 1,271 Employees

Canva, the Sydney-based graphic design software giant, announced a significant corporate restructuring this week that will impact 1,271 employees, representing 22 percent of its total workforce. Co-founder and CEO Melanie Perkins described the move as the most difficult decision in the company's thirteen-year history, noting that the organization must "refound" itself to navigate the challenges of the next decade.

The restructuring comes as the company faces its first period of slowed growth in a decade. Perkins explained that the company intends to return to its origins by fostering smaller, empowered teams with greater autonomy. As part of the organizational shift, the company is merging its product, growth, and platform teams into a single product organization to reduce management layers and simplify internal processes.

Beyond staff reductions, the company is shifting its operational strategy by centralizing more of its product teams in Sydney. Employees in hybrid roles will also be required to work from the office two to three days per week starting in January. Perkins emphasized that these changes are designed to improve collaboration and decision-making, which she noted had become fragmented as the company grew into a global entity with staff across 37 countries.

The company has faced increasing pressure as it navigates a changing technological landscape. While Perkins did not explicitly attribute the cuts to the rise of artificial intelligence, she acknowledged that new technology is rapidly transforming user expectations and creative workflows. The company previously delayed the rollout of major AI-driven software updates due to the high operational costs associated with serving its massive user base of over 200 million monthly active users.

Financial headwinds have also played a role in the company's strategic pivot. In recent months, venture capital backers including Blackbird and Airtree have marked down their valuations of the company, reflecting broader investor concerns regarding the impact of AI on software businesses. Canva itself downgraded its revenue growth forecast for the year to 20 percent, a notable decline from the higher growth rates observed in previous years.

To support those affected by the layoffs, Canva is providing a comprehensive severance package. Departing employees will receive at least six months of salary, 12 months of continued healthcare coverage, and career transition support, including LinkedIn Premium access. Additionally, the company is launching the "Canva Collective Fund," which will offer $10,000 grants to former staff members who wish to start their own businesses or community initiatives.