Canva, the Australian-founded design software company, is undertaking a major restructure that will affect 1,271 employees, approximately 22% of its global workforce. The changes involve job cuts, role modifications, and relocations to centralized hubs, as announced by CEO Melanie Perkins in a memo to staff. Perkins characterized the decision as "without doubt the hardest moment in our thirteen-year history," citing a need to adapt to a changing technological environment and a slowdown in the company's growth for the first time in a decade.
The company is merging its product, growth, and platform teams into a unified product organization. This consolidation aims to streamline processes, reduce management layers, and foster greater autonomy within smaller, empowered teams. Sydney will become a primary base for more product teams, with hybrid workers expected to be in the office two to three days per week starting in January. While the exact number of outright job losses has not been specified, the total figure of 1,271 represents all employees impacted by these changes.
Canva's decision follows a broader trend in the technology sector, where companies are reassessing their strategies amid increased competition and the rapid integration of artificial intelligence. Although Perkins' memo did not directly attribute the cuts to AI replacing roles, the company had previously lowered its 2026 revenue growth forecast from 30% to 20% in August. This adjustment was partly due to higher-than-anticipated costs associated with serving AI features, particularly on advanced "frontier models." The company has since begun developing its own AI models, such as Canva Craft, to mitigate reliance on third-party providers and reduce serving costs.
Canva has outlined a support package for departing employees. This includes at least six months of salary, continued healthcare coverage for 12 months in countries where it is provided, and 12 months of access to the company's employee assistance program. Additionally, employees will be allowed to keep their company-issued MacBooks and may apply for $10,000 grants through the newly established Canva Collective Fund to support new ventures. The company is also offering career support, including one-on-one coaching and LinkedIn Premium subscriptions.
The restructuring comes at a time when Canva's valuation has faced scrutiny from investors. Earlier this year, investment firms marked down the value of their Canva shares, with one investor, T. Rowe Price, reducing its stake's valuation by 20% as of August 31, implying a valuation of $30.4 billion. The company's previously anticipated initial public offering (IPO) has also been deferred.
Canva plans to hold a company-wide meeting on November 10 to address employee questions and discuss future plans. The company operates in 37 countries, and the implementation of these changes will adhere to local requirements and processes.