Canva plans to redeploy, relocate or lay off 22% of its global workforce, affecting 1,271 employees, as part of an internal restructuring alongside an expansion of its artificial intelligence work. CEO and co-founder Melanie Perkins described the changes in a company-wide message as the most difficult moment in Canva’s 13-year history.

Perkins said the company’s growth had left it with a complex structure, including highly specialized teams, too many management roles and coordination steps the company considered unnecessary. Canva plans to bring its Product, Growth and Platform teams into a single organization and reduce the number of specialist and managerial positions by combining responsibilities into broader roles.

The changes also affect where development teams are based. Sydney is expected to become Canva’s main development hub, meaning some employees may need to consider relocating. Perkins acknowledged the impact and said the company would provide support during the process.

From January 2027, employees will also be required to work from an office two to three days a week, depending on their role and location.

Employees who leave because of the restructuring will receive at least six months of pay and 12 months of health coverage. They will also be allowed to keep their company-issued MacBooks. Affected workers can additionally apply for US$10,000 through the Canva Collective Fund to start a business or develop a community project. Perkins said Canva would not take an ownership stake in funded initiatives.

The restructuring comes as Canva expands its AI capabilities and investment in its own models. The company has reported 250 million monthly users and said it has cut the cost per task for its AI models by 90%, with newer versions 30 times cheaper and five times faster than their predecessors. In September, Canva had 120 researchers working on its models. The company is also on track to record year-over-year revenue growth.

Sources: Olhar Digital.