Canva slashes 22% of staff as AI competition and slowing growth force major overhaul

Key points

• Canva announced a major restructuring affecting 1,271 employees, representing 22% of its global workforce.
• CEO Melanie Perkins described the move as the 'hardest moment' in the company's 13-year history, noting that growth has slowed for the first time in a decade.
• The restructuring includes consolidating Product, Growth, and Platform teams into a single organization to improve ownership and reduce subspecialization.
• Sydney will become the primary hub for product teams, with hybrid workers expected to spend two to three days in the office weekly starting in January.
• Departing employees will receive at least six months of salary, 12 months of healthcare coverage, and career support, including a US$10,000 grant fund for new ventures.

Background

This move follows a broader trend of tech layoffs in 2026, where companies like Netflix and eBay have cut thousands of jobs to prioritize AI integration and strategic growth. Canva had previously lowered its 2026 revenue growth forecast from 30% to 20% in August, signaling early signs of the slowdown that now necessitates this drastic restructuring.

How outlets are covering it

While Business Insider and The Guardian focus on the scale of the cuts and the structural changes, BBC highlights the financial impact, noting that Canva's valuation dropped from A$60bn to A$49bn over the past year. The Guardian explicitly contrasts Canva's silence on AI in its memo with the broader industry trend of 'SaaS-pocalypse' fears, whereas ABC News features industry experts calling AI an 'existential threat' to Canva's core business model. Business Insider emphasizes the internal memo's focus on returning to 'small, empowered teams,' while BBC notes the relocation demands for staff in 37 countries.

Why it matters

Canva's restructuring signals a significant shift in the design software sector as AI tools from OpenAI and Google intensify competition. The decision to centralize operations in Sydney and reduce subspecialization reflects a broader industry pivot toward efficiency and AI integration, potentially setting a precedent for how established tech firms adapt to rapid technological disruption.

What to watch

Canva will hold a company-wide all-hands meeting on November 10 to discuss the changes, followed by organizational all-hands from November 11. Departing employees have until December 14 to register interest in the Canva Collective Fund. The company expects most hybrid workers to begin spending two to three days in the office weekly starting in January 2027.