Canva, the global design platform, will lay off 1,271 employees, approximately 22% of its global workforce, marking the most difficult year in the company’s 13-year history, according to its co-founder and CEO.
The restructuring, announced by CEO Melanie Perkins, comes as Canva experiences a slowdown in growth for the first time in a decade. The company has also revised its 2026 revenue growth forecast downward from 30% to 20%.
Largest Workforce Reduction in Company History
The layoffs will impact employees across various teams, with some losing their jobs, others changing roles, and some being asked to relocate to the company’s main hubs. The exact number of employees who will lose their jobs has not been disclosed. Canva employs approximately 5,800 people across 37 countries and was valued at around 38.6 billion euros in its last employee stock sale.
Company Restructuring Cuts Jobs
In a letter to employees, Perkins stated that the company must become simpler and return to small, autonomous teams. The restructuring will combine several teams, including those responsible for product development, growth, and technological infrastructure. The move is intended to simplify communication and accelerate decision-making. A key challenge for Canva is the rapidly increasing costs of artificial intelligence. To reduce expenses and reliance on external tools, the company has begun developing its own AI models. However, this has not been sufficient, leading to the decision to cut jobs. Sydney is set to become the main hub for the majority of product teams as a result of the restructuring.
Support for Affected Employees
Employees affected by the layoffs will receive a minimum of six months of salary, health insurance for 12 months, career support, and the option to keep their work laptop. According to available information, employees may also receive a grant of approximately 9,200 euros. For those who joined the company in the last year, the waiting period for receiving stock options will be waived.
Canva's workforce reduction follows a pattern in the tech industry, with other companies including Netflix, Uber, and Dropbox also announcing job cuts in recent months.
