Australian graphic design software maker Canva announced a restructuring on November 4, 2026, cutting or relocating 1,271 roles, which accounts for 22% of its global workforce, following a period of slowing growth and rising artificial intelligence expenses.
Restructuring Metrics and Strategic Realignment
- Workforce Reduction: 1,271 roles affected globally across 37 countries, representing 22% of total staff.
- Financial Adjustments: Internal valuation downgraded to approximately $US31 billion, with 2026 revenue forecast growth slowing to 20%.
- Operational Shifts: Sydney designated as the primary home for expanded product teams, with hybrid employees mandated to work on-site two to three days weekly starting next year.
Melanie Perkins Details Thirteen-Year Low in Growth
Co-founder and chief executive Melanie Perkins described the decision as without doubt the hardest moment in our thirteen-year history in an email sent to employees on Wednesday. Perkins noted that growth at the Sydney-headquartered firm slowed during the year for the first time in a decade, prompting leadership to pursue comprehensive structural changes rather than minor adjustments.
The company, founded in 2013 by Perkins, Cliff Obrecht, and Cameron Adams, serves more than 265 million monthly active users globally. According to reporting by The Sydney Morning Herald, the business previously experienced rapid expansion, recording revenue growth of 45% two years prior and 38% in 2025. However, soaring expenses related to rolling out new artificial intelligence products have weighed on the company’s valuation.
Backers Reduce Valuation as Revenue Growth Forecasts Slow
Backers including Blackbird Ventures and Airtree downgraded the firm’s valuation from A$60 billion at the end of the previous year down to approximately A$49 billion, while Canva independently adjusted its internal valuation to $US31 billion. Financial forecasts similarly experienced downward revisions, with projected revenue growth scaling back to 20% for the year.
| Metric | Previous Period | Current Period / Forecast |
|---|---|---|
| External Valuation (AUD) | A$60 billion | A$49 billion |
| Global Workforce Reduction | Baseline active headcount | 1,271 roles (22%) |
Software company Atlassian eliminated 1,600 positions, while reductions also touched Block, owner of Afterpay, and software developer WiseTech Global. Meanwhile, shares of rival design platform Figma declined 44% over the course of the year despite reported revenue expansion. This is Canva’s first-ever company-wide redundancy round, though it has made smaller cuts before, having cut 10 of its 12 technical writers in 2025 and 32 jobs in its finance division earlier in the year amid a torrid year for the local tech sector.
Severance Terms and Departure Support
Staff members leaving the company retain their laptops and become eligible to apply for $US10,000 grants intended to assist in launching new business ventures.
The restructure also involves consolidating operations into centralized hubs. Sydney will expand its footprint as the primary home for core product teams, and hybrid staff must adhere to mandatory in-office schedules starting in January. While earlier operational adjustments included minor reductions—such as trimming ten technical writer roles in 2025 and thirty-two finance positions earlier in the year—the current realignment marks the first company-wide redundancy program in the firm’s history.
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Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
