Australian-founded design software company Canva has announced a major global restructure affecting 1,271 employees, or 22 per cent of its workforce, as it responds to slowing growth and changes in the technology industry.
Co-founder and chief executive Melanie Perkins announced the changes to staff on Wednesday, 4 November 2026, describing the decision as the most difficult moment in the company’s 13-year history.
It is reported that the changes will involve job losses, role changes and requests for some employees to relocate to centralised hubs.
Canva has not disclosed how many of the 1,271 affected positions will result in redundancies.
In a message to employees, Perkins said the company needed to rethink its organisational structure to prepare for the next decade.
“To set ourselves up for the next decade, we need to refound Canva, getting back to our roots of small, empowered teams with the freedom to make decisions, take ownership and focus on what matters most for our community.”
The restructure will bring Canva’s Product, Growth and Platform teams together into a single product organisation, reduce management layers and consolidate overlapping responsibilities.
Sydney will become the primary base for more of Canva’s product teams and other specialist roles requiring closer collaboration. Some employees will be asked to consider relocating, while most hybrid employees are expected to spend two to three days a week in the office from January 2027.
Canva operates across 37 countries, meaning the timing and process of consultations will vary according to local employment requirements.
Perkins acknowledged the impact on employees and their families, saying the company would provide support to those affected.
Departing employees will receive at least six months’ salary, with additional support including career assistance, continued healthcare coverage where available and the opportunity to apply for US$10,000 grants through a new fund for those interested in starting their own ventures.
The announcement comes as Canva faces a changing technology landscape and growing competition from artificial intelligence tools.
Perkins did not explicitly identify artificial intelligence as the reason for the redundancies. However, she referred to new technology transforming what people can create, how they create it and what they expect from the products they use.
The ABC reported that the restructure was about positioning Canva to develop AI-related products rather than directly replacing departing employees with AI.
Melbourne-based digital and AI agency Revium managing director Adam Barty told the ABC that advances in AI-powered video and visual design tools could pose a significant challenge to Canva’s business model.
He argued that Canva’s large user base could become more important to its long-term position than its proprietary software platform as competition from AI companies and start-ups increases.
The company has also acknowledged that its growth slowed for the first time in a decade, with Perkins saying smaller organisational changes would not be sufficient to prepare Canva for its next phase.
The restructure marks a significant change for one of Australia’s most prominent technology companies, which grew from an Australian start-up into a global design platform.
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