Canva Layoffs 2026: 1,271 Jobs Cut in Global Restructuring

Australian design platform Canva has announced plans to lay off 1,271 employees as part of a major organisational restructuring, marking one of the largest workforce reductions in the company’s 13-year history. CEO Melanie Perkins informed employees about the decision through an internal memo on Tuesday, describing it as one of the most difficult moments for the company.

The layoffs will affect approximately 22% of Canva’s global workforce. The company reportedly employs more than 5,700 people across 37 countries, including India. However, Canva has not yet disclosed which teams, offices or geographical locations will be most affected by the Job Cuts.

The decision comes as the company reassesses its organisational structure, responds to slower growth and prepares for the next phase of its business. Alongside the workforce reduction, Canva plans to combine major teams, reduce management layers and establish Sydney as its primary operational base.

How many employees will Canva lay off in 2026?

Canva plans to eliminate 1,271 positions, representing approximately 22% of its global workforce. The scale of the reduction makes it one of the most significant restructuring exercises in the company’s history.

With more than 5,700 employees working across 37 countries, the layoffs are expected to affect a substantial portion of its international operations. India is among the countries where Canva has employees, although the company has not confirmed whether specific offices or teams will face a larger share of the cuts.

The announcement was communicated internally by CEO Melanie Perkins, who described the decision as particularly difficult. The company has not provided a detailed breakdown of the affected roles or departments.

Why is Canva laying off employees?

The restructuring follows a period of slower business growth that Perkins described as Canva’s hardest year yet. The company is seeking to reorganise its operations and create a structure that it believes will better support its long-term plans.

As part of the changes, Canva intends to combine major teams and reduce management layers. The objective is to simplify its organisational structure and prepare the business for the coming decade.

Perkins said the company had considered several alternatives before deciding that a larger organisational change was necessary. The decision reflects the challenges Canva is facing as it reassesses its growth expectations and operating model.

Canva reduces its 2026 revenue growth forecast

Another important factor behind the restructuring is the company’s revised revenue growth outlook. Canva has reduced its projected revenue growth for 2026 from 30% to 20%.

The lower forecast indicates that the company expects a slower pace of revenue expansion than previously anticipated. While Canva has not directly linked the layoffs to the revised projection, the change provides important context for its decision to reorganise operations and reduce its workforce.

The combination of slower growth expectations and organisational changes suggests that the company is reassessing how it allocates resources as it prepares for its next stage of development.

Is artificial intelligence behind Canva’s job cuts?

The announcement has also raised questions about the growing influence of Artificial Intelligence in the design industry. AI-powered design, image-generation and editing tools are changing how individuals and businesses create visual content.

These developments have increased competition for traditional design platforms, including companies offering tools for graphic design, presentations and digital content creation.

However, Perkins did not directly attribute the layoffs to artificial intelligence. The company has instead described the decision as part of a broader organisational restructuring following slower growth.

Although AI is reshaping the design software market, there is currently no confirmed indication that the 1,271 job cuts were specifically caused by automation or the replacement of employees with AI tools.

What severance package will affected Canva employees receive?

Canva has outlined a range of financial and career-support benefits for employees affected by the layoffs. The company said departing employees will receive at least six months of salary, along with their statutory entitlements and additional assistance.

The package is intended to provide financial support during the transition and help affected workers explore new employment opportunities or other career options.

The benefits announced by Canva include:

• At least six months of salary: Employees leaving the company will receive a minimum of six months’ pay.
• Statutory entitlements: Affected employees will receive applicable employment-related entitlements.
• Healthcare coverage: The company will continue healthcare coverage for 12 months in countries where the benefit is available.
• Canva Care access: Departing employees will receive one year of access to Canva Care.
• Career support: Employees will receive career coaching and interview preparation assistance.
• LinkedIn Premium: The company will provide a LinkedIn Premium subscription to support job searches and professional networking.
• MacBook retention: Departing employees will be allowed to keep their work MacBooks.
• Alumni talent directory: Employees will receive access to an alumni talent directory.

The benefits are intended to help employees manage the immediate financial impact of losing their jobs while providing resources to support their next career move.

Canva introduces $10,000 Collective Fund grants

In addition to salary and career assistance, Canva is introducing a programme called the Collective Fund. It will offer grants of $10,000 to employees interested in starting their own businesses or supporting community projects.

The initiative provides another option for departing employees who may want to pursue entrepreneurship or contribute to projects outside traditional employment.

By including the grants in its separation package, Canva is extending its support beyond immediate financial compensation and job-search assistance.

Canva plans to make Sydney its primary operational base

Alongside the layoffs, Canva is planning changes to its workplace arrangements and operational structure. The company intends to establish Sydney as its primary operational base as part of the restructuring.

Most employees working under hybrid arrangements are expected to attend offices two to three days a week starting January 2027.

The change represents an adjustment to the company’s working arrangements and could affect employees based in different locations. Canva has said that employees who are required to relocate will receive assistance from the company.

However, the company has not disclosed further details about how many employees may need to move or which specific teams will be affected by the operational changes.

What the Canva restructuring means for its global workforce

The decision to eliminate 1,271 positions represents a major change for a company that has expanded its operations internationally over the past 13 years.

With employees spread across 37 countries, the restructuring raises questions about how Canva will distribute responsibilities after reducing its workforce. Combining major teams and removing management layers could change reporting structures and the way different departments work together.

The planned shift towards Sydney as the primary operational base also indicates that the restructuring involves more than job reductions. Changes to office attendance and potential relocation requirements are expected to form part of the company’s revised operating model.

For employees, the immediate concern will be the impact on jobs, financial security and future career opportunities. Canva’s announced severance package provides several forms of assistance, although the specific impact will depend on individual employment arrangements and the benefits available in each country.

What happens next at Canva?

Canva’s next phase will involve implementing the workforce reductions, combining major teams and adjusting its management structure. The company will also need to prepare for the planned workplace changes beginning in January 2027.

The revised 2026 revenue growth forecast of 20% provides an indication of the business environment in which these changes are taking place. Meanwhile, the growing use of AI-powered design tools continues to reshape the industry, although Canva has not identified AI as the direct reason for the layoffs.

The restructuring marks a significant turning point for the Australian design platform. With 1,271 positions being eliminated and new operational arrangements planned, Canva is attempting to reorganise its business for the coming decade while offering financial and career support to employees leaving the company.