Canva cuts 22% of workforce as it restructures product organization
Canva announced a restructuring that will see 1,271 employees, or 22% of its staff, laid off or reassigned, as it consolidates product, growth and platform teams in Sydney.
Australian design platform Canva disclosed on Wednesday that it will lay off 1,271 employees – roughly 22 percent of its workforce – as part of a company-wide reorganization aimed at simplifying its product structure and centralising more teams in Sydney.
- The layoff figure represents 1,271 staff members across multiple roles.
- Canva will merge its Product, Growth and Platform groups into a single “Product Org” to streamline decision-making.
- Departing employees will receive at least six months’ salary, a year of health coverage and career-transition support.
What triggered the restructuring?
CEO and co-founder Melanie Perkins wrote to staff that Canva’s growth rate has slowed for the first time in a decade, prompting a reassessment of its operating model. She emphasized that “small changes won’t be enough” and that the company must “refound Canva” by returning to smaller, empowered teams that can act quickly on community needs. The announcement did not cite specific financial pressures, but the company’s private status means detailed earnings are not publicly disclosed.
Key elements of the new organization
According to Perkins’ internal memo, the primary change is the creation of a unified Product organization that combines the previously separate Product, Growth and Platform functions. The goal is to reduce overlapping responsibilities, clarify ownership and give teams greater autonomy. The reorganization also includes a shift in work-location policy: starting in January, most hybrid employees will be expected to work in the office two to three days per week, with Sydney becoming the main hub for product teams and other specialties that benefit from close collaboration.
Impact on affected staff
Employees who are let go will keep their company-issued MacBooks and receive a severance package that includes at least six months of salary and twelve months of health-insurance coverage. Canva will also provide a one-year LinkedIn Premium membership and other career-support resources to help former staff find new opportunities. Those remaining will attend two rounds of meetings next week – a company-wide session followed by team-specific briefings – to discuss the transition.
Why the move matters for the broader tech ecosystem
Canva has grown into a major challenger to Adobe, reporting 260 million monthly users and $3.5 billion in revenue last year. Its decision to cut a sizable portion of its headcount signals that even fast-growing, profitable private firms are feeling pressure to tighten operations as the pace of technological change accelerates. The restructuring mirrors similar moves by other Australian tech leaders, such as Atlassian, and follows a recent wave of layoffs at U.S. design-focused firms, including Squarespace’s 19 percent cut.
What comes next for Canva?
Perkins framed the reorganization as a long-term investment in the company’s next decade, aiming to restore the agility that powered its early success. By consolidating product functions and encouraging more in-person collaboration, Canva hopes to accelerate feature development and improve the user experience for its large community of designers. The company has not announced any changes to pricing or product roadmap, but the shift toward smaller, cross-functional teams suggests a focus on rapid iteration and tighter alignment with customer expectations.
