Canva cuts more than one thousand jobs in major restructure

Sydney-based design giant Canva has announced a major restructure that will impact 1,271 roles across the company. Co-founder and chief executive Melanie Perkins told staff that the cutbacks represent 22 per cent of the global workforce. She described the move as the hardest moment in the thirteen-year history of the company following a year of slowed growth.

Ms Perkins said growth at the firm has slowed for the first time in a decade, prompting the difficult decision. The company will merge its product, growth, and platform teams into a single organisation to return to small, empowered teams. Sydney is set to become the primary home for more product teams as part of the operational overhaul, bringing more staff back into local offices.

Departing employees will receive at least six months of salary and a year of continued healthcare where applicable. The firm is also establishing a fund to provide grants of US$10,000 to support departing staff looking to launch new business ventures or give back to communities. From January, hybrid staff will be expected to work from the office two to three days each week as part of revised attendance expectations.

The restructure follows broader industry pressures and investor concerns regarding artificial intelligence competitors impacting software businesses. Blackbird, which is Canva's biggest venture backer, previously adjusted its valuation of the company downward earlier this year amid shifting market conditions. Company leaders said the operational changes are necessary to set the platform up for success over the coming decade.

The firm aims to reduce management layers and remove organizational fragmentation while reshaping its core operations. Affected employees have begun receiving notifications regarding the changes as the technology company manages its current transition phase.