Australian design software company Canva announced a major restructuring affecting 1,271 employees, approximately 22% of its global workforce, as revenue growth slows and competition in the digital design market intensifies.
The changes, announced on November 4, include job reductions, relocations and adjustments to existing roles. Canva has not disclosed how many employees will ultimately be laid off.
Co-founder and Chief Executive Officer Melanie Perkins described 2026 as the company’s most challenging year since its founding in 2013, citing its first significant growth slowdown in a decade.
Growth Forecast Reduced
Canva lowered its projected revenue growth for 2026 from 30% to 20% in August, reflecting a more moderate expansion outlook.
The company is also operating in an increasingly competitive market as artificial intelligence tools expand their capabilities in graphic design, image generation and content creation.
Although Canva has invested in developing its own AI models and incorporating new capabilities into its platform, the company did not explicitly identify artificial intelligence as the reason for the restructuring.
Organizational Changes and Employee Support
As part of the reorganization, Canva plans to combine its product, growth and platform teams, reduce management layers and consolidate certain operations into centralized locations.
The company is also moving toward a hybrid working model, with employees expected to spend part of their working week in offices.
Affected employees who leave the company will receive at least six months of salary, along with additional benefits that may include extended healthcare coverage, career assistance and access to professional development resources.
Canva has also introduced a program offering eligible departing employees grants of up to $10,000 to establish new businesses.
The restructuring represents a significant organizational change for Canva as it adjusts its operations following slower growth. The final number of job losses remains undisclosed.
