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Canva is announcing changes and layoffs affecting 22 percent of its staff
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Canva will eliminate 1,271 roles and change the responsibilities or locations of other positions, cutting about 22 percent of its workforce, co-founder and CEO Melanie Perkins told staff. The Sydney-based design software company said the restructuring follows a review of alternatives and is intended to prepare for its next decade. Perkins said the decision would mean "saying goodbye to teammates and friends who have helped build Canva into what it is today." The announcement makes Canva one of the largest Australian tech companies to undertake a major staff reduction.
In a note to employees, Perkins described the move as a "refound" of Canva rather than a routine cost cut. She said small changes would not be enough and that the company needed to return to its roots of small, empowered teams with freedom to make decisions, take ownership and focus on community needs. The restructuring will combine Canva's Product, Growth and Platform teams into a single product organization. It will also simplify layers and consolidate overlapping responsibilities.
Canva said Sydney will become the primary home for more product teams and for roles in other specialties where shared context and close collaboration are especially important. Some employees will be asked to relocate to centralized hubs, while others will see their roles change. Starting in January, Canva will expect most hybrid employees to spend two to three days a week in an office, depending on what makes sense for their area. The company framed the office policy as part of a broader effort to improve collaboration.
Employees leaving Canva will receive at least six months of salary, twelve months of healthcare coverage and career support resources. Perkins acknowledged the impact on departing staff and said the company had explored a wide range of alternatives before concluding that deeper changes were necessary. The benefits package is more generous than many severance programs in the tech sector. Canva did not disclose the total cost of the restructuring.
The layoffs reflect continuing pressure across technology companies as they adjust to slower growth and reassess staffing after years of expansion. On the previous day, Squarespace announced layoffs affecting 19 percent of its staff. The back-to-back announcements show that workforce reductions are continuing beyond the largest U.S. platforms and are reaching profitable, design-focused software companies. Canva's decision also highlights how remote and hybrid work policies are being revisited.
For Canva, the restructuring is meant to sharpen product development and decision-making as it competes in a crowded design and collaboration market. Bringing product, growth and platform teams together could reduce duplication and speed execution. Making Sydney a larger hub may strengthen coordination among teams that need close contact. The changes could also affect morale and the company's ability to retain specialized staff.
Perkins said the changes are designed to set Canva up for the next decade. The company's challenge will be to complete the reorganization while maintaining the collaborative culture that helped it grow. Employees and observers will watch whether the refound improves focus and execution. Canva's handling of layoffs and return-to-office expectations will also shape its reputation as an employer.
