The Australian design software firm will merge teams and cut or relocate 22 percent of staff as growth slows.
Australian design software maker Canva is overhauling its operations in a move that will affect 1,271 workers, or 22 percent of its global staff, through layoffs, role changes, or relocations. Chief executive Mel Perkins shared the plan in a company memo sent on Wednesday, calling the decision “without doubt the hardest moment in our thirteen-year history,” TechRadar reported.
Why Canva is restructuring
The restructuring comes after Canva saw its expansion rate slow down for the first time in a decade, The Register reported. Perkins explained in her memo, titled ‘An important update on our team,’ that recent growth made the company’s internal structure too complex and inefficient. Teams had split into narrow areas of ownership with too many managers, creating unnecessary coordination and handoffs between groups.
Perkins wrote that “After exploring a wide range of alternatives, I’ve come to the difficult conclusion that small changes won’t be enough.” Rather than framing the move strictly as a cost reduction, the company described it as a transformation to return to smaller, more autonomous groups.
Under the plan, Canva will merge its product, growth, and platform divisions into a single unified product organization. The company also intends to reduce specialist and management positions by rolling those duties into wider roles. In addition, Canva is consolidating more of its product development at its Sydney headquarters, meaning a number of employees will be asked to relocate. Perkins promised comprehensive support for workers who choose to move.
Support packages and office rules
Employees who leave Canva will receive at least six months of salary along with twelve months of health insurance coverage. Departing staff will be allowed to keep their company-issued MacBooks and will receive job-seeking assistance, including a one-year subscription to LinkedIn Premium. The company is also offering grants of $10,000 through the Canva Collective Fund to help departing workers launch their own businesses or community projects, with Perkins confirming that Canva will take no equity in those ventures.
The restructuring announcement also included a shift in Canva’s remote work setup. While the company previously backed hybrid arrangements, it plans to introduce a stricter policy starting in January 2027. Under that schedule, hybrid staff will need to work from an office two or three days a week, depending on their role and location.
Company finances and technology
Canva is privately held and does not have the public reporting duties of a listed company. Executives have previously said the business is profitable on a free-cash-flow basis. The outlets reported slightly different figures for Canva’s user base. TechRadar reported that Canva recently confirmed 250 million monthly users, while The Register reported that Canva announced 260 million monthly users last year alongside $3.5 billion in revenue. Both Canva and fellow Australian software company Atlassian have announced job reductions this year.
While Perkins’ memo did not attribute the reorganization to financial distress, it noted that new technology is shifting user expectations and the way people build products. Canva has invested in artificial intelligence, employing 120 in-house AI researchers as of September. It has also upgraded its internal models, cutting task costs by 90 percent while making them 30 times cheaper and five times faster, and remains on pace to increase its year-over-year revenue this year.
What happens next for staff
Employees directly affected by the restructuring will receive calendar invitations for optional one-on-one meetings with senior leaders. Workers remaining at the company will take part in two sets of meetings next week, consisting of an all-hands company gathering followed by sessions within their restructured teams.
