● Covered by 3 sources · 3 reportsMedium impact1 negative2 neutral
Canva Restructures, Affecting 1,271 Employees Through Layoffs and Relocations
Key points
- Canva is restructuring, affecting 1,271 employees (22% of staff).
- Changes include role modifications, relocations, and layoffs.
- Product, Growth, and Platform teams will consolidate into one organization.
- Sydney will become a primary hub for more product teams.
- Affected employees will receive at least six months' salary and other benefits.
- Canva reduced its revenue growth forecast from 30% to 20%.
- The company is reducing 'subspecialisation,' asking employees to take on more responsibilities.
- Canva is moving to hybrid work, requiring office presence a few days a week.
- Canva is shipping its own AI models to reduce costs and reliance on third-party models.
Significant Workforce Changes at Canva
Canva, the Australian-founded design platform, is implementing a major restructure that will impact 1,271 employees, accounting for 22% of its global workforce. Co-founder and CEO Melanie Perkins announced that these changes will involve role modifications, requests for relocation to centralized hubs, and layoffs.
Perkins described this restructure as the "hardest moment in our thirteen-year history," emphasizing that small changes would not be sufficient to prepare Canva for the next decade. The company aims to return to its roots of small, empowered teams with autonomy.
Organizational Consolidation and Centralization
As part of the restructuring, Canva will consolidate its Product, Growth, and Platform teams into a single product organization. This move is intended to simplify organizational layers and address overlapping responsibilities. Sydney will become the primary home for more of these product teams, as well as other roles.
The company is also implementing a hybrid work model, requiring employees to be in the office 2-3 days per week.
Support for Affected Employees
For employees whose roles are being eliminated, Canva is providing support packages that include at least six months' salary. Additional benefits, such as grants for starting new ventures, will also be offered. The company stated its commitment to making the relocation process as smooth as possible for those asked to consider it.
Industry Context
Canva's restructure reflects a broader trend within the technology sector. Software companies are adjusting to competitive pressures, including the rise of artificial intelligence disruptors, and are actively integrating AI tools into their own offerings. This environment is leading many companies to re-evaluate their operational structures.
Updates
- Canva reduced its revenue growth forecast from 30% to 20%.
- The company is reducing 'subspecialisation,' asking employees to take on more responsibilities.
- Canva is moving to hybrid work, requiring office presence a few days a week.
- Canva is shipping its own AI models to reduce costs and reliance on third-party models.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
Canva, a design software company, laid off 1,271 employees, representing 22% of its staff, due to a slowdown in growth. The company also reduced its revenue growth forecast from 30% to 20% to manage increasing AI costs and competition from AI startups.
Canva is restructuring its global workforce, resulting in the cutting or relocation of 1,271 jobs, which represents 22% of its total employees. This change is part of a broader trend in the tech sector where software companies are adjusting to competitive pressures and integrating AI tools. Affected employees will receive at least six months' salary and other benefits, including grants for starting new ventures.
Canva is undergoing a significant restructuring that will impact 1,271 employees, or 22% of its staff, through role changes, relocations, and layoffs. The company aims to return to a model of small, empowered teams by consolidating product organizations and centralizing some functions in Sydney, while also implementing a hybrid work model requiring 2-3 office days per week.