Canva to Lay Off 1,271 Employees, 22% of Workforce

Australian design platform Canva has announced a major restructuring that will affect 1,271 employees, representing approximately 22% of its global workforce. Co-founder and CEO Melanie Perkins informed employees about the changes on November 4, 2026, describing the decision as the most difficult moment in the company’s 13-year history. The restructuring will involve job cuts, changes to existing roles and the relocation of some employees to centralised offices.

The announcement comes as Canva faces slowing business growth and rapid changes in the technology industry. Perkins said the company’s growth had slowed for the first time in a decade and that smaller organisational adjustments would not be sufficient to prepare it for the next phase. The company plans to combine several departments, reduce management layers and give smaller teams greater responsibility for product development. It will also offer departing employees at least six months of salary and additional career support.

Why Is Canva Cutting 1,271 Jobs?

Canva’s restructuring is part of a broader organisational overhaul that CEO Melanie Perkins described as a company-wide refounding.

In an internal memo published through Canva’s newsroom, Perkins explained that the company had spent months evaluating how it should operate to remain competitive over the next decade.

She identified two major challenges: slowing growth and changes in how people create and use digital products.

Canva has grown into one of the world’s most widely used design platforms, serving hundreds of millions of users. However, its expansion has also created increasingly complex organisational structures, with teams divided across specialised functions.

Perkins said this structure had created additional coordination and handovers between departments, making it harder for employees to take ownership of larger projects.

The company now wants to return to smaller, more empowered teams that can make decisions faster and focus on developing products.

Importantly, Canva did not explicitly describe the announcement as an AI-driven layoff. Its official explanation referred more broadly to new technology changing how people create and use products. However, the restructuring comes amid growing competition from generative AI tools that are changing the design and creative software industry.

What Changes Will Canva Make?

Canva has outlined three major organisational changes as part of the restructuring.

1. Combining Product, Growth and Platform teams

The company plans to bring its Product, Growth and Platform departments together under a single Product organisation.

Previously, these functions operated across separate teams with different responsibilities. Canva believes combining them will reduce unnecessary coordination and allow employees to work towards common product objectives.

The new structure is intended to give teams clearer ownership of projects and greater flexibility in decision-making.

2. Reducing management layers and specialised roles

Canva also plans to reduce organisational complexity by consolidating overlapping responsibilities and reducing the number of management layers.

The company wants employees to take broader ownership rather than concentrating on narrow areas of specialisation.

This could result in changes to existing positions and the removal of certain overlapping roles.

3. Moving more teams to centralised offices

Sydney will become the primary location for more of Canva’s product teams and other functions requiring close collaboration.

Some employees will be asked to consider relocating to centralised hubs.

Beginning in January 2027, most hybrid employees are also expected to work from offices approximately two to three days per week, depending on their location and team requirements.

Canva operates across 37 countries, meaning the implementation of these changes will differ according to local employment requirements.

Not All 1,271 Employees Will Be Laid Off

Although the headline figure is 1,271 employees, Canva’s announcement makes an important distinction.

The figure represents the total number of employees affected by the restructuring, not necessarily the number of people losing their jobs.

According to Perkins, some employees will experience changes to their roles, while others will be asked to relocate. The remaining affected employees will leave the company.

Canva has not disclosed the exact number of positions that will be eliminated outright or provided a complete breakdown by department and country.

The distinction is important because the restructuring combines redundancies with organisational changes and relocation requirements.

The company has also said that different local processes will determine when affected employees are informed of their individual circumstances.

Canva Offers Six Months’ Salary and $10,000 Grants

Canva has announced an extensive support package for employees leaving the company.

The package is designed to provide financial assistance, healthcare coverage and help with finding new employment.

Employee benefit	Support offered
Salary support	At least six months’ salary, including statutory entitlements
Company laptops	Employees can keep their Canva MacBooks
LinkedIn Premium	One-year subscription
Healthcare	12 months of continued coverage in countries where provided
Career support	Individual coaching and interview preparation
Employee assistance	12 months of Canva Care support
Equity vesting	Removal of the one-year vesting cliff for eligible recent hires
Startup grants	$10,000 through the Canva Collective Fund

One of the more unusual elements is the Canva Collective Fund, which will provide $10,000 grants to departing employees interested in starting businesses or pursuing community projects.

Employees leaving as part of the restructuring have until December 14, 2026, to register their interest.

Canva has said it will not take ownership or equity in the businesses or projects created using these grants.

The company will also create an opt-in alumni talent directory and share it with investors, partners and its wider professional network to help departing employees find new opportunities.

Canva’s Growth Has Slowed for the First Time in a Decade

The restructuring follows a challenging year for the company.

Perkins acknowledged that Canva’s growth had slowed for the first time in ten years, making 2026 its hardest year yet.

Earlier reporting by Business Insider indicated that Canva reduced its 2026 revenue growth forecast from 30% to 20% in August.

The company is also operating in an increasingly competitive market.

Generative AI tools can now create images, presentations, marketing materials and other visual content through text prompts. This is changing the competitive landscape for traditional design software providers.

Companies such as Adobe, Microsoft and OpenAI are expanding their AI-powered creative capabilities, while Google is also investing in generative design tools.

These developments create pressure on platforms such as Canva to continuously improve their products and demonstrate why users should continue paying for design services.

Canva’s restructuring is therefore taking place at a time when the economics and competitive dynamics of creative software are changing.

Canva’s Valuation Faces Pressure

The restructuring also follows concerns about Canva’s private-market valuation.

In August 2026, Blackbird Ventures, one of Canva’s major investors, reportedly reduced its valuation of the company by 17% to approximately $34.9 billion.

The adjustment reflected broader investor concerns about technology valuations and the potential impact of artificial intelligence on software businesses.

A lower private-market valuation does not necessarily mean the company has lost the same amount of cash or experienced an equivalent decline in revenue. It represents an investor’s revised assessment of the company’s equity value.

Nevertheless, valuation pressure can increase expectations that private technology companies demonstrate stronger growth, operational efficiency and a clear path to future profitability.

Canva’s latest restructuring indicates that management wants to simplify operations and redirect resources towards its next stage of product development.

The Bigger Picture

Canva’s decision highlights the pressure facing established software companies as artificial intelligence changes how digital products are developed and used. Design platforms that once relied heavily on specialised editing tools are now competing in a market where users increasingly expect AI-assisted content creation, automated workflows and faster results.

The restructuring also reflects a broader shift in technology-company management. Businesses are reconsidering large departmental structures and multiple management layers in favour of smaller teams with broader responsibilities. However, Canva’s announcement should not be interpreted as proof that AI directly caused all 1,271 affected positions. The company cited slowing growth, organisational complexity and changing technology as reasons for its decision.

Looking Ahead

Canva’s immediate priority will be implementing the restructuring across its global operations while managing employee departures and relocation requirements. The company plans to hold a company-wide meeting on November 10, 2026, to discuss the changes and answer employees’ questions. Investors and industry observers will also watch whether the new organisational structure helps the company accelerate product development and improve operational efficiency.

For the broader creative software industry, Canva’s restructuring is another indication that established platforms must adapt to rapid technological changes. The company’s ability to combine AI-powered features, accessible design tools and a sustainable business model will influence its position in the market. Whether the organisational changes translate into stronger growth will become clearer over the coming quarters.