Canva Restructure Affects 1,271 Employees, or 22% of Its Workforce, as CEO Calls It the Company’s Hardest Decision

Australian design software company Canva is undertaking a major restructuring that will affect 1,271 employees, or about 22% of its global workforce. Co-founder and CEO Melanie Perkins told staff in a November 4 memo that it was “without doubt the hardest moment in our thirteen-year history.” Not everyone affected will lose a job: some employees will be asked to change roles or relocate, while others will leave the company. Canva has not disclosed the final number of redundancies.

The company said its growth had slowed for the first time in a decade and that its existing organizational structure needed to change. The restructuring will combine product, growth and platform teams into a single product organization and make Sydney the primary hub for more product teams. From January, most hybrid employees will be expected to work in an office two to three days a week.

1,271 employees are affected, but not all will be laid off

In her memo, Perkins said Canva needed to reduce management layers, consolidate overlapping responsibilities and reorganize the skills and teams required for its next stage. The figure of 1,271 includes people who may be made redundant, moved into different roles or asked to relocate. It is not a confirmed list of 1,271 layoffs.

Canva has teams in 37 countries, so the timing and details of the changes will vary according to local employment rules and business needs. The company has not published a breakdown of how many people will be made redundant, transferred or relocated. Some affected employees may be able to move into other roles, while others may choose to leave rather than relocate.

Departing employees receive at least six months’ pay and health coverage

Canva said departing employees will receive at least six months of salary, inclusive of statutory entitlements. In countries where the company already provides health benefits, employees will retain coverage for another 12 months. Staff leaving the company can also keep their work laptops and receive career-transition coaching, one year of LinkedIn Premium and 12 months of employee assistance services.

The company is also creating a Canva Collective Fund to provide $10,000 grants to departing employees who want to start a business or support their communities. Employees must register their interest by December 14. Canva said staff will retain access to Slack and Gmail until the end of the week to organize files and complete handovers.

The package is intended to support employees through a difficult transition, although the details may differ by country and local employment requirements.

Slower growth and AI competition add pressure to the business

Perkins attributed the restructuring to slower growth, organizational complexity and rapid technological change. Her memo did not directly say that artificial intelligence caused the job cuts. However, the Financial Times and The Information reported that Canva has faced higher costs for developing AI products and stronger competition from image-generation tools. In August, the company lowered its full-year revenue growth forecast from 30% to 20%.

Canva continues to invest in AI-powered design tools, but the cost of building and operating those products is changing the economics of software businesses. The company must compete with both established design software and newer AI image-generation products that can create visuals with fewer traditional editing steps.

Canva has been one of Australia’s most successful technology startups, and investors had previously viewed it as a potential 2027 IPO candidate. But changes in growth expectations and valuation have made the timing of a public listing uncertain. The restructuring’s ability to lower costs and restore growth will need to be tested in future quarterly results.

Sydney becomes a central hub for product teams

Canva plans to merge its product, growth and platform teams into one product organization and concentrate more product roles in Sydney. The company says fewer management layers and fewer handoffs between teams should allow smaller groups to move faster and take clearer responsibility for products.

For employees, the changes could mean relocation to Sydney or other centralized hubs, as well as changes in job responsibilities. Most hybrid workers will also be expected to spend two to three days per week in an office beginning in January.

The confirmed development is that 1,271 employees, or 22% of Canva’s workforce, are affected by a combination of job cuts, role changes and relocation requirements. The company has not disclosed how many will ultimately lose their jobs. The restructuring also changes the organization of product teams and the company’s hybrid-work expectations. Whether it restores growth, affects a potential 2027 IPO or results in further workforce changes remains to be seen.