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Canva to cut 22% of workforce in major restructuring

Canva disclosed a sweeping reorganization that will impact 1,271 workers, representing roughly 22% of its global staff, in a memo circulated by chief executive Melanie Perkins on Tuesday.

Background and reasons for the change

Perkins described the past year as the company’s “hardest year yet” and noted that growth has slowed for the first time in a decade. Earlier in the year, Canva trimmed its 2026 revenue growth outlook from 30% to 20%. The slowdown coincides with intensified competition from artificial‑intelligence image‑generation tools offered by firms such as OpenAI and Google.

Key elements of the reorganization

The memo outlines three primary shifts. First, the separate Product, Growth and Platform divisions will be merged into a single Product organization to simplify ownership and reduce hand‑offs. Second, the firm will collapse multiple layers of subspecialisation, broadening roles so teams can own projects from start to finish and eliminating overlapping responsibilities. Third, Canva will co‑locate closely linked teams, designating Sydney as the main hub for many product groups and other specialties. Employees asked to relocate will receive comprehensive assistance, and from January most staff are expected to work in the office two to three days per week, depending on local circumstances.

Support for affected employees

Canva said it will provide a range of financial and career‑transition resources to those leaving the company. Each departing employee will receive at least six months of salary, inclusive of statutory entitlements, and the one‑year vesting cliff on equity will be removed for staff hired within the past year. Health coverage will continue for twelve months in regions where Canva currently offers it, and the Canva Care employee‑assistance program will also be extended for a year to employees and their families.

Additional support includes one‑on‑one coaching, interview preparation, a year of LinkedIn Premium, and a dedicated talent‑acquisition team to help polish resumes. Departing staff may join an opt‑in alumni directory that will be shared with investors, partners and industry contacts. Canva will let former employees keep their company MacBooks and has launched a Canva Collective Fund that offers $10,000 grants to those who wish to start a new venture or community project, with applications open until December 14. The company will not take equity in any resulting initiatives.

Implementation will begin with individual meetings between impacted staff and senior leaders. Because Canva operates in 37 countries, the timing and specific procedures will vary by location. Affected employees will retain access to Slack and Gmail until the end of the week to allow them to communicate the news to colleagues.