Canva Announces Layoffs Affecting 1,271 Employees As Growth Slows For First Time In Decade

Canva is cutting jobs just as artificial intelligence (AI) reshapes the design software business it helped popularize.

The Australian design platform has announced a major restructuring affecting 1,271 employees, or 22% of its workforce, through layoffs, relocations, and role changes. The move follows its first slowdown in growth in a decade, alongside mounting pressure from AI competition and rising technology costs.

Here's what happened.
 

TL;DR

 

• Canva's restructuring will affect 1,271 employees, representing 22% of its global workforce.
• CEO Melanie Perkins confirmed layoffs, role changes, and relocations, but hasn't disclosed the exact number of job losses.
• Sydney will become the primary base for more product teams, with hybrid employees expected in offices two to three days weekly.
• The changes follow slowing growth and reported valuation declines.

 

Canva Restructures 22% Of Workforce As CEO Calls It Hardest Moment In 13 Years

Canva co-founder and CEO Melanie Perkins described the decision as "without doubt the hardest moment in our thirteen-year history," in a message to employees reported on November 4.

The restructuring affects employees across a business operating in 37 countries. However, the 1,271 figure includes employees asked to move locations or take different roles, not exclusively those losing their jobs.

The company is simplifying its organizational structure, reducing specialized functions, and moving toward smaller teams with greater autonomy.

Perkins acknowledged that incremental adjustments would not be sufficient, particularly after the company's growth slowed for the first time in ten years.

Employees leaving Canva will receive at least six months of salary and an additional 12 months of healthcare coverage in eligible countries. They can retain their laptops and apply for grants worth $10,000 to launch their own ventures.

Meanwhile, Canva's restructuring goes beyond job reductions.
 

Canva Makes Sydney Its Main Product Hub And Tightens Hybrid Work Rules

As reported by the BBC, Canva is centralizing more of its product operations in Sydney, Australia, while bringing employees together for increased in-person collaboration.

Beginning in January 2027, most hybrid employees will be expected to work from the office two to three days each week.

The changes reflect Perkins' plans to remove organizational layers and streamline operations. However, employees who cannot relocate to designated hubs may face difficult decisions about their future with the company.

Interestingly, the restructuring comes after Canva substantially expanded its technology capabilities, including Canva AI 2.0, which introduced conversational design and agent-driven creative workflows.

That technological push provides an important backdrop to the company's latest business overhaul.
 

Topics For More Insights

• Canva Launches Craft, Its First AI Image Model, With 2K Images & Editable Designs
• Canva Create 2026 Sees The Launch Of Offline Mode, Pro Tools & A Learning Hub
• Canva Bets Big On AI Workflows & Marketing Automation By Buying Simtheory & Ortto
• Australia’s Canva Pays $571K In Infringement Notices Over Delayed Financial Filings

 

Canva Faces Valuation Pressure As AI Competition And Spending Intensify

The workforce overhaul also arrives amid growing questions about Canva's valuation and the financial implications of AI investments.

According to reports on Canva's restructuring, technology advances are allowing users to accomplish tasks without traditional specialized design software, increasing competitive pressure across the industry.

Canva has also reportedly lowered its internal valuation amid rising AI-related expenses. Separately, investors Blackbird Ventures and Airtree reportedly reduced their estimates of the company's value from A$60 billion to approximately A$49 billion.

The challenges are particularly significant for a company founded in 2013 to make professional-quality design accessible to people without technical expertise.

Although Canva has not disclosed the precise number of employees being laid off, its latest restructuring signals a substantial operational shift as it seeks to regain momentum while navigating a rapidly changing software market.