Canva Restructures Workforce, Affecting 1,271 Employees

Canva is overhauling its global operations in a restructuring that will affect 1,271 employees, representing 22% of its workforce. Announced on November 4, 2026, the Australian-founded design platform's changes include layoffs, role adjustments and employee relocations as the company responds to slower growth and mounting business pressures.

Chief executive Melanie Perkins described the decision as the most difficult chapter in the company's history. According to Canva, the restructuring will involve employees across its international operations, although the company has not disclosed how many workers will lose their jobs specifically.

The company acknowledged that the previous year had been particularly challenging, with growth slowing for the first time in a decade. Perkins described the period as "our hardest year yet" in her communication to employees.

She also characterized the restructuring as "without doubt the hardest moment in our thirteen-year history," according to her message to staff.

Perkins said the company had made an "incredibly hard decision" that would require "significant changes," including organizational adjustments and departures.

She explained the consequences for affected employees in her message.

"For some people, this will mean changes to their roles or being asked to relocate to centralised hubs. Sadly, it will also mean saying goodbye to teammates and friends who have helped build Canva into what it is today," said Perkins, Canva's chief executive.

The restructuring also involves changes to the company's workplace arrangements. Canva intends to make Sydney the "primary home" for more of its product teams, while hybrid employees will be expected to work from an office two to three days each week starting next year.

Perkins acknowledged that relocation could create significant personal challenges for employees being asked to move.

"We know relocating is a big decision for those being asked to consider it, and we're committed to making the process as smooth as possible with comprehensive support," said Perkins.

According to the Guardian, the company's organizational strategy includes "collapsing layers" and bringing "more teams together in person." The changes are intended to simplify its structure and increase collaboration.

Employees departing under the restructuring will receive at least six months of salary. They will also retain healthcare coverage for another 12 months in countries where that benefit is provided and can keep their company laptops.

Canva is additionally offering departing employees the opportunity to apply for US$10,000 grants to establish their own businesses.

Artificial intelligence has become an important source of pressure across the software industry. Companies are increasingly competing with AI-powered alternatives while investing heavily in integrating similar capabilities into their own products.

Perkins highlighted the pace of technological change in her message to employees.

"New technology is transforming what people can create, how they create it, and what they expect from the products they use," said Perkins.

Canva's restructuring comes amid concerns about its valuation and the financial demands of developing AI-powered products. According to the BBC, Blackbird Ventures and Airtree, two of the company's investors, reportedly reduced their valuation assessment from A$60bn at the end of the previous year to approximately A$49bn.

The BBC also reported that Canva had lowered its own internal valuation as expenses associated with introducing AI products increased. The company did not explicitly identify artificial intelligence as a reason for the restructuring announcement.

The broader technology sector is confronting concerns described as a "SaaS-pocalypse," referring to the possibility that increasingly capable AI systems could make specialized software products less necessary. Several established technology companies have consequently revised their business strategies or accelerated AI adoption.

Founded in 2013, Canva provides accessible graphic design tools and templates for creating presentations, marketing materials, invitations and other visual content. The company operates across 37 countries and was established by Perkins, who left university at 19 to pursue her first business venture.