Canva announces major job cuts, 1,271 employees affected in global restructure

Australian design technology company Canva is restructuring its global operations, with 1,271 employees, representing 22% of its workforce, set to be affected by job cuts, role changes and relocation requirements.

The move comes as the company faces slowing growth and mounting pressure to adapt to the rapid expansion of artificial intelligence (AI), according to media reports.

Co-founder and chief executive Melanie Perkins described the decision as “without doubt the hardest moment in our thirteen-year history” in a message to employees.

The restructuring marks a significant shift in its operating model as it seeks to simplify its business, reduce specialised functions and bring teams closer together.

Canva's restructuring follows what Perkins described as its most challenging year, with the company recording its first slowdown in growth in a decade.

“It had been our hardest year yet, and as we shared earlier this year, our growth has slowed for the first time in a decade,” Perkins wrote to employees.

She said the scale of technological change had prompted the company to reconsider its organisational structure and operating priorities.

“New technology is transforming what people can create, how they create it, and what they expect from the products they use,” Perkins said. “I’ve come to the difficult conclusion that small changes won’t be enough.”

The changes also reflect wider disruption across the software industry, where AI-powered tools are remodelling how businesses develop products and compete for customers. 

As part of the overhaul, Sydney will become the primary base for more of Canva's product teams, with the company looking to consolidate operations and encourage greater in-person collaboration.

From January 2027, employees working under hybrid arrangements will be expected to spend two to three days a week in the office. 

The company also plans to bring more teams together in centralised hubs, with some employees being asked to relocate.

Canva said it would provide support to employees affected by the relocation requirements. 

Those leaving the company will receive at least six months of salary and retain healthcare coverage for a further 12 months in countries where the benefit is provided. They will also be allowed to keep their laptops.

Perkins said the restructuring would involve fewer specialised roles, fewer organisational layers and a return to smaller, more empowered teams.

The restructuring comes amid concerns over Canva's valuation and the financial implications of incorporating AI into its products.

Media reports earlier this year indicated that investors Blackbird Ventures and Airtree had marked down Canva's valuation from A$60bn at the end of last year to about A$49bn. 

The company has also reportedly reduced its internal valuation amid increasing AI-related expenses linked to the development and rollout of new products.

Founded in 2013 by Perkins, Cliff Obrecht and Cameron Adams, Canva provides online design and publishing tools that allow users to create presentations, marketing materials, graphics and other visual content without requiring professional design skills.

The company operates across 37 countries and has grown into one of Australia's best-known technology businesses. 

However, the latest restructuring highlights the challenges facing established software companies as AI changes customer expectations, product development and the economics of the technology industry.