Canva Restructures Operations and Cuts Staff in Major Corporate Overhaul

Design platform Canva announced a major corporate restructuring that will affect 1,271 employees, representing 22 percent of its global workforce, through layoffs, relocations and role changes.

The changes were detailed in a memo published by co-founder and chief executive Melanie Perkins, who stated that the company will also require hybrid employees to work from offices two to three days a week starting in January.

The restructuring comes as the Australian software firm navigates its slowest growth period in a decade, following a reduction in its internal revenue growth forecast from 30 percent to 20 percent earlier in the year.

The company has faced rising competition from artificial intelligence tools and increasing costs to integrate new technology into its platform, mirroring broader shifts across the technology sector.

"For some people, this will mean changes to their roles or being asked to relocate to centralised hubs," said Melanie Perkins, the chief executive of Canva.

"Sadly, it will also mean saying goodbye to teammates and friends who have helped build Canva into what it is today," said Perkins.

Perkins described the move as "without doubt the hardest moment in our thirteen-year history" in her message to the staff.

"After exploring a wide range of alternatives, I've come to the difficult conclusion that small changes won't be enough," said Perkins.

Employees who lose their positions will receive at least six months of salary, alongside 12 months of healthcare coverage in eligible countries, according to company reports.

Departing workers will also be allowed to keep their work laptops and can apply for grants worth 10,000 United States dollars to start new ventures, The Guardian reported.

Canva did not specify the exact number of workers who will face outright layoffs rather than relocation or role changes, according to reports.

The restructuring will make Sydney the primary home for a larger portion of the company's product teams.

Other technology firms have also announced significant workforce reductions recently, including Squarespace, Atlassian, Block and WiseTech Global.

While The Guardian reported that Canva did not mention artificial intelligence in its restructuring announcement, BBC News and Hindustan Times noted that the company is attempting to stay relevant amid AI advancements.