Canva, the design platform with more than 265 million monthly active users globally, has announced plans to restructure its business in what it described as "without doubt the hardest moment in our thirteen-year history." Announced on November 4, the changes will affect 22% of its workforce.
According to an internal memo shared by a user on X, "this means 1,271 or 22% of Canva will be impacted."
"For some people, this will mean changes to their roles or being asked to relocate to centralized hubs," co-founder and CEO Melanie Perkins wrote in the update. She added that the changes would also mean some employees having to say farewell to their teammates.
Since launching in 2013, Canva has spent more than a decade making graphic design accessible to creatives, businesses and brands. Its growth has helped turn it into one of the world's most widely used design platforms. So why is the company now planning a restructuring that will affect more than 1,200 employees?
David Adubiina
Why Canva is cutting jobs
In a BBC report, the firm's value was reported to have dropped over the past year due to the impact of artificial intelligence (AI) on its business, as well as the cost of incorporating the technology into its platforms.
Earlier this year, two of its biggest investors, Blackbird Ventures and Airtree, were also reported to have downgraded the creative platform's valuation from A$60 billion ($42 billion) at the end of last year to about A$49 billion ($34.3 billion). This amounts to a drop of over $7 billion from its peak valuation.
Canva is also dealing with the cost of its own AI expansion, with expenses related to the rollout of new products. The company has reportedly cut its 2026 revenue growth forecast from 30% to 20%.
But cutting jobs is only part of the plan in its reorganisation. Alongside the cuts, the company plans to make Sydney its primary base of operations.
Perkins said working across multiple countries had brought access to talent and other benefits but had also made it harder for teams to collaborate on complex problems.
What Canva plans to do for departing employees
While the restructuring will mean hundreds of employees leaving the company, Canva has outlined a support package to help them through the transition. The provisions cover financial compensation, healthcare and career assistance, with some additional support for employees looking to start businesses or pursue community projects.
The announced benefits include:
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