Canva Announces Major Restructuring, With Layoffs and Job Changes Affecting 22% of Its Workforce

Canva has announced one of the biggest layoffs in its history, with 1,271 employees set to get affected. The restructuring affects around 22% of its workforce, including employees facing layoffs, new roles, or relocation. The move comes as the design platform reassesses its business and prepares for another phase of growth.

Canva is also laying off employees as growth slows for the first time in a decade

In an internal update, CEO, Melanie Perkins, noted the decision as the hardest moment in Canva’s 13-year history. She said the company had experienced slower growth for the first time in a decade. Canva wants to return to smaller teams with clearer responsibilities and fewer management layers. As part of the overhaul, it will combine its Product, Growth, and Platform teams into one Product organization.

Sydney will also become the primary base for more product teams and closely connected roles. Meanwhile, most hybrid employees will be expected to work from the office two to three days weekly starting January.

The company is providing substantial support to employees affected by the changes. Everyone leaving will receive at least six months of salary, including statutory entitlements. Eligible employees will also receive 12 months of healthcare coverage where available. Canva is allowing departing employees to keep their company-issued MacBooks and removing the one-year equity vesting cliff for eligible recent hires.

The company is also offering career coaching, interview preparation, and one year of LinkedIn Premium. Additionally, its new Canva Collective Fund will provide $10,000 grants to departing employees starting businesses or community projects.

Canva wants to rebuild for its next chapter

The restructuring comes as AI-powered tools continue changing the creative software industry. Canva wants to simplify its operations, reduce overlapping responsibilities, and help teams move faster. That said, affecting 22% of its workforce is a significant move for a company that has spent years expanding its global presence.