Canva Layoffs Affect 1,271 Employees in Major Restructuring

Canva has announced a major workforce restructuring that will affect approximately 1,271 employees, representing around 22% of its total staff. The changes will include Job Cuts, role changes and relocations to central hubs as the Australian design technology company looks to simplify its operations and adapt to the growing influence of Artificial Intelligence (AI).

Chief Executive Officer and co-founder Melanie Perkins disclosed the restructuring in a note to employees published on the company’s website. She said the business needs a significant organisational reset rather than a series of smaller adjustments.

The announcement comes after Canva experienced a slowdown in growth for the first time in a decade. The changes also reflect wider pressure across the software industry, where AI is reshaping product development, workplace structures and the skills companies require.

Canva Restructuring to Affect 1,271 Employees

According to Perkins, around 1,271 people, or 22% of Canva’s workforce, will be affected by the planned changes. However, the company has not specified how many employees will lose their jobs, move into different positions or relocate to central office hubs.

The restructuring is intended to make Canva a simpler organisation with smaller and more empowered teams. Perkins indicated that the company plans to reduce niche specialisations and give teams greater responsibility for delivering products and business priorities.

She described the decision as the most difficult moment in Canva’s 13-year history, highlighting the scale of the organisational changes.

AI Transformation Drives Changes Across the Software Industry

Canva’s restructuring comes as artificial intelligence changes how individuals and businesses create digital content. AI-powered tools are making it easier for users to produce designs, presentations and other creative materials without relying entirely on specialised software or professional assistance.

Software companies are also increasingly exploring how AI can improve productivity and reduce the need for certain manual tasks. This shift is prompting businesses to reconsider their operating models, team structures and workforce requirements.

Perkins said new technology is transforming what people can create, how they create it and what they expect from the products they use. She concluded that small organisational changes would not be sufficient to prepare Canva for the next stage of its development.

While AI is an important part of the broader industry transformation, the company has not attributed every planned job change or relocation directly to automation. The announcement instead points to a wider effort to reshape the organisation around changing technology and business priorities.

Sydney to Become the Main Base for More Product Teams

As part of the restructuring, Sydney will become the main base for a larger share of Canva’s product teams. The company also plans to increase face-to-face collaboration among employees.

Most employees working under hybrid arrangements will be expected to spend two to three days per week in the office from January. The move signals a shift towards more regular in-person interaction as Canva reorganises its teams and working arrangements.

Some employees will also be required to relocate to central hubs as part of the changes. The company has not provided a detailed breakdown of how many workers will be affected by relocation requirements.

Canva Looks to Simplify Its Business Structure

The planned overhaul reflects Canva’s intention to move away from a structure with numerous specialised roles towards smaller teams with broader responsibilities. The company believes this approach will help it respond more quickly to changes in technology and customer expectations.

Reducing organisational complexity could also help teams coordinate product development and decision-making more effectively. However, the transition will require employees to adapt to new responsibilities, reporting structures and workplace arrangements.

For Canva, the challenge will be balancing operational changes with its ability to continue developing products and serving users across global markets.

What the Restructuring Means for Canva’s Future

The announcement highlights the growing impact of AI on the technology workforce. Companies across the software sector are reassessing how work is organised as AI tools expand the capabilities of individuals and smaller teams.

Canva’s decision to affect more than one-fifth of its workforce marks a substantial shift for a company that has built its business around making design and publishing tools accessible to a broad audience.

The effectiveness of the restructuring will depend on how smoothly the company manages job changes, relocations and its new team structure. It will also need to maintain product development and customer service while adapting to a rapidly changing competitive environment.

For now, the company has outlined the scale and direction of the overhaul, but the exact number of employees facing job losses remains unclear. The changes are expected to reshape Canva’s workforce and operating model as it prepares for an increasingly AI-driven software industry.