Canva to cut 1,271 jobs, about 22% of its workforce

Canva has announced layoffs affecting 1,271 employees, or about 22% of its workforce, as part of a company-wide restructuring. Co-founder and CEO Melanie Perkins announced the decision in a note to employees on 4 November.

Perkins described the move as the "hardest moment" in the company's 13-year history and apologised to staff. The restructuring will also change some employees' roles, and others will be asked to relocate to centralised offices.

Perkins said Canva's expansion has lost momentum after a decade of rapid gains. She said the company must change how it works to keep pace with a fast-moving technology industry. In her note, she wrote that small changes would not be enough.

"I've come to the difficult conclusion that small changes won't be enough," Perkins wrote. She said the company needs to return to smaller, empowered teams with the freedom to make decisions.

The company plans three main changes. It will fold its Product, Growth and Platform teams into a single Product organisation. It will also reduce specialised roles and management layers, so employees take more responsibility for their work. Finally, it will bring more teams together in offices, with Sydney becoming the main base for more product teams.

Canva said it is supporting affected employees with severance packages and additional benefits. The package includes a MacBook and a year of LinkedIn Premium. Canva has been investing heavily in AI features in recent times.

How many of the affected employees are based in India or elsewhere, and how many will be asked to relocate rather than leave, is not yet known. No timetable has been given for when the cuts will take effect.