Canva Restructures 22% of Workforce Amid Slowing Growth and AI Pressures
Canva is cutting or relocating 1,271 employees, 22% of its staff, as part of a major restructuring to refound the company. CEO Melanie Perkins cited slowed growth and the need to return to smaller, empowered teams. The move includes consolidating product teams, centralizing operations in Sydney, and requiring hybrid staff to work in offices two to three days a week starting in January. Departing employees will receive six months' salary, 12 months of healthcare, and career support.
Key points
- Canva is affecting 1,271 employees, 22% of its workforce, with job cuts, role changes, or relocations to centralized hubs.
- CEO Melanie Perkins described the move as the 'hardest moment' in the company's 13-year history, citing slowed growth for the first time in a decade.
- The restructuring merges Product, Growth, and Platform teams into a single organization and simplifies management layers.
- Sydney will become the primary hub for product teams, and hybrid employees must work in offices two to three days a week starting in January.
- Departing staff receive at least six months' salary, 12 months of healthcare, and career support resources, including potential $10,000 grants for new ventures.
Background
Canva, founded in 2013, has faced declining valuations due to AI concerns, with Blackbird Ventures and Airtree downgrading its value to approximately A$49 billion. The company had previously made smaller cuts in 2025 and earlier in 2026. This restructuring follows a broader tech sector trend, including layoffs at Squarespace, Atlassian, and WiseTech Global, amid AI-driven disruptions.
How outlets are covering it
The Verge emphasizes the organizational consolidation and return to 'small, empowered teams.' BBC highlights the 'hardest year' and AI's impact on valuation. The Guardian notes the broader tech sector trend and AI's role in competitive pressures, while SMH details the financial context, including delayed AI updates and IPO delays. All sources agree on the 22% impact but differ in emphasis: The Verge focuses on structure, BBC on AI/valuation, Guardian on sector trends, and SMH on financial specifics.
Why it matters
Canva's restructuring signals the impact of AI on software companies, forcing them to adapt or face obsolescence. It reflects broader tech sector challenges, where companies must balance AI integration with cost management and competitive pressures. The move also highlights the shift toward centralized operations and hybrid work models in the tech industry.
What to watch
Canva will address staff on November 10, and hybrid employees must work in offices two to three days a week starting in January. The company will continue to consolidate teams and centralize operations in Sydney. Departing employees will receive severance and career support, and the company will monitor the impact of AI on its business model.
- Canva is announcing changes and layoffs affecting 22 percent of its staff The Verge
- Canva announces major job cuts after 'our hardest year yet' BBC
- Canva layoffs: design giant to cut or relocate more than 1,200 jobs in major restructure The Guardian
- Canva Announces Layoffs, Job Changes for About 22% of Workforce Bloomberg.com
- Canva to cut more than 1000 jobs in ‘hardest moment’ of its history SMH.com.au
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