Canva plans to reorganize its workforce, affecting around 1,271 employees, or 22% of its staff. The changes will include role transfers and modifications, as well as redundancies; the company has not disclosed how many employees will be laid off.
CEO Melanie Perkins described the move as the most difficult moment in Canva’s 13-year history. She said the company needs to rebuild around smaller, more autonomous teams, arguing that incremental changes would not be enough. The plan includes merging teams and moving more employees to Sydney, Canva’s main headquarters and a hub for product teams.
From January, most employees currently working on a hybrid basis are expected to attend the office two to three days a week. Those who are made redundant will receive at least six months’ pay and 12 months of health coverage, along with career support and the option to keep their company laptop. Canva will also provide grants through a fund for departing employees who want to pursue other ventures. Applications close on December 14.
Perkins pointed to slowing growth, rather than AI, as the main reason for the changes. She said growth had slowed for the first time in a decade and described this as the company’s most difficult year so far. At the same time, she said new technology is changing what people can create and what they expect from the products they use.
The restructuring comes as software companies face competition from AI-powered tools for image creation. Canva has also been preparing for a possible public listing, according to Bloomberg, though the company has not announced plans for an IPO.
Sources: Xataka.