Canva Announces Major Overhaul and Job Impacts Affecting 22% of Workforce

Online design and publishing platform Canva Inc. has announced a sweeping corporate overhaul and job impacts that will affect 1,271 people, or roughly 22 per cent of its total staff. The announcement was made public Wednesday through a note posted on the company's website by Chief Executive Officer and co-founder Melanie Perkins.

According to the company, the affected employees will face job losses, role changes, or relocations to central hubs. Perkins described the reorganization as the most difficult moment in the Sydney-based firm's 13-year history, noting that the business had experienced a slowdown in growth for the first time in a decade.

The structural changes at Canva reflect a broader wave of upheaval across the software industry. As artificial intelligence technologies advance—such as tools that allow users to operate with fewer workers and accomplish tasks on their own without specialty programs—investors have raised concerns about the potential cannibalization of traditional software business models. Similar market pressures have impacted other technology sectors, including recent challenges faced by data center operators and aborted public offerings.

Perkins noted that new technology is fundamentally transforming creation processes and user expectations, leading her to conclude that incremental changes would be insufficient. As part of the restructuring, Canva plans to simplify its operations, eliminate niche specializations, and return to smaller, empowered teams.

Additionally, the company is shifting its operational footprint. Sydney will serve as the primary base for a larger share of Canva's product teams, with a heavier emphasis on face-to-face collaboration. Most hybrid staff will be required to work from the office two to three days a week starting in January.

The overhaul comes as Canva prepares for a potential public listing, leaving the company operating in a delicate financial balance. The firm previously reached a valuation peak of $40 billion in 2021 before dropping to roughly $26 billion a year later amid a broader technology sector selloff.

"Canva's decision highlights how artificial intelligence is forcing technology companies to re-evaluate their operational structures much faster than previously anticipated. When market growth slows and automation shifts industry standards, companies must adapt their business models and team sizes to remain viable. For startups and mature tech firms alike, this structural reckoning signals a broader shift toward operational efficiency and leaner teams as the industry navigates the integration of AI." — Dr. Shishir Gupta, Founder & CEO, StartupLanes