Canva is restructuring its operations in ways that will affect 1,271 employees, or 22% of its workforce, after chief executive Melanie Perkins reported the company’s first growth slowdown in a decade.
The Australian design software company plans layoffs, changes to responsibilities and requests for some employees to relocate. It has not disclosed how many people will leave as part of the overhaul.
In a staff memo that Canva published online, co-founder Perkins described the year as the company’s hardest and apologised for the disruption to employees and their families.
After considering alternatives, she concluded that smaller adjustments would not adequately prepare the business for its next phase. “we need to refound Canva,” Perkins wrote.
Canva will combine its Product, Growth and Platform teams into one product organisation. It also plans to reduce management layers, consolidate overlapping responsibilities and replace some narrow specialities with broader roles.
Perkins argued that the existing structure required too many handovers between teams and fragmented ownership. Smaller teams with greater autonomy would take responsibility for goals from start to finish.
Sydney will become the main base for more product teams and other roles that require close collaboration. Canva has promised relocation support for employees who consider moving.
From January 2027, the company expects most hybrid employees to attend an office around two to three days a week, depending on their team’s requirements.
Departing staff will receive at least six months’ salary, including statutory entitlements, regardless of location. Canva will also continue healthcare coverage for 12 months in countries where it currently provides that benefit.
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For employees who joined within the past year, Canva will remove the one-year share-vesting cliff. Its support package also includes career coaching, interview preparation and permission to keep company MacBooks.
Through its Canva Collective Fund, the company will offer US$10,000 grants to departing employees who want to start businesses or community projects. Applicants have until December 14 to register interest, and Canva will take no equity in their ventures.
Perkins stressed that the decisions did not reflect the affected employees’ talent or contributions. Canva will hold a company-wide meeting on November 10 to explain the changes and answer staff questions.
(With additional input from Reuters.)
