Australian design software company Canva on Wednesday announced a sweeping restructuring affecting 1,271 employees, or approximately 22 per cent of its global workforce, as slowing growth and rapid technological changes force the company to rethink its operations.
The overhaul will involve job cuts, changes to existing roles and relocation of some employees to centralised offices. However, the company has not disclosed how many of the affected employees will actually lose their jobs.
Chief Executive Officer Melanie Perkins announced the changes in an internal memorandum, describing the restructuring as the company's most difficult decision since its founding in 2013.
The announcement comes as artificial intelligence transforms the software industry, allowing users to perform increasingly sophisticated design tasks without relying on traditional specialised applications.
๐๐ฟ๐ผ๐๐๐ต ๐๐น๐ผ๐๐ ๐ฎ๐ณ๐๐ฒ๐ฟ ๐ฎ ๐ฑ๐ฒ๐ฐ๐ฎ๐ฑ๐ฒ
Perkins acknowledged that Canva's growth had slowed for the first time in 10 years, prompting a reassessment of its organisational structure and long-term business strategy.
The company had earlier lowered its projected revenue growth for 2026 from 30 per cent to 20 per cent.
In her message to employees, Perkins said technological advances were changing both customer expectations and the way creative products were developed.
"New technology is transforming what people can create, how they create it, and what they expect from the products they use," she said.
She added that incremental adjustments would not be sufficient to address the challenges facing the business.
Perkins described the restructuring as the hardest moment in Canva's 13-year history, acknowledging the impact on employees who had contributed to the company's expansion.
๐ฆ๐บ๐ฎ๐น๐น๐ฒ๐ฟ ๐๐ฒ๐ฎ๐บ๐, ๐ณ๐ฒ๐๐ฒ๐ฟ ๐ฟ๐ผ๐น๐ฒ๐
Under the restructuring plan, Canva will combine its Product, Growth and Platform divisions into a single product organisation to reduce overlapping responsibilities and accelerate decision-making.
The company intends to simplify management structures, reduce specialised positions and give smaller teams greater responsibility for product development.
Perkins said the objective was to return to the company's original operating philosophy of small, independent teams capable of making decisions without excessive organisational complexity.
Sydney will become the principal location for more of Canva's product teams, with some employees being asked to relocate.
Beginning in January 2027, most employees working under hybrid arrangements will be expected to attend their offices two to three days a week, depending on their roles and locations.
๐ฆ๐ถ๐ ๐บ๐ผ๐ป๐๐ต๐' ๐ฝ๐ฎ๐ ๐ณ๐ผ๐ฟ ๐ฒ๐ ๐ถ๐๐ถ๐ป๐ด ๐๐๐ฎ๐ณ๐ณ
Canva has announced financial and career assistance for employees whose positions are eliminated.
Departing employees will receive at least six months' salary, along with additional support for career transitions.
The company will also provide extended healthcare coverage where applicable and remove certain restrictions on equity vesting for eligible employees.
In addition, Canva will offer grants of $10,000 to departing employees seeking to establish businesses or undertake community projects.
The company said it had considered alternatives before deciding that a broader restructuring was necessary.
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Canva's restructuring comes amid growing concerns that generative AI could disrupt established software business models by enabling individuals and organisations to create content using automated tools.
AI-powered platforms can now generate images, presentations, marketing material and other visual content, intensifying competition for conventional design software providers.
Although Canva did not explicitly identify AI as the reason for its restructuring announcement, the company acknowledged that technological changes were transforming its market.
Several other Australian technology companies have announced workforce reductions as they adjust their operations and investment priorities.
Enterprise software company Atlassian announced approximately 1,600 job cuts earlier this year, while WiseTech Global also undertook substantial workforce reductions.
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Founded by Perkins, Cliff Obrecht and Cameron Adams, Canva has grown into one of Australia's most prominent technology companies, offering online design and publishing tools to users worldwide.
The privately held company has long been considered a potential candidate for a major stock market listing.
Its valuation reached approximately $40 billion in 2021 before falling to around $26 billion during the subsequent technology sector downturn.
More recently, the company has faced renewed scrutiny from investors over growth expectations and the costs associated with developing and deploying AI-powered products.
The restructuring signals a significant change in Canva's operating strategy as it attempts to sustain growth, manage costs and remain competitive in an increasingly AI-driven software market.