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Canva Announces Major Job Cuts Amid Slowing Growth
Confirmed
In Short: Canva, an Australian design software company, announced significant job cuts affecting 22% of its workforce, as it faces slowing growth and technological changes.
Canva, one of Australia's best-known startups, has announced major job cuts affecting 22% of its workforce, or 1,271 employees, as part of a broader restructuring plan. Co-founder and CEO Melanie Perkins described this as the company's most challenging moment in its 13-year history, emphasizing the need for significant changes to ensure future growth.
Perkins noted that the company's growth has slowed for the first time in a decade, making this year 'our hardest yet.' She explained that the restructuring is necessary to adapt to new technologies that are transforming how people create content and what they expect from software products.
The restructuring will see Sydney become the primary home for more of Canva's product teams, with hybrid workers expected to spend two to three days in the office starting next year. Canva will also combine its product, growth, and platform teams into a single product organization to streamline operations.
For employees affected by the changes, Canva will provide severance packages that include at least six months of salary, inclusive of legally required entitlements, regardless of location. Additionally, the company is launching the Canva Collective Fund, which will grant up to $10,000 for employees looking to start a new business or community project.
Canva's internal valuation has reportedly been cut amid soaring AI expenses related to the rollout of new products. Earlier this year, two of its backers, Blackbird Ventures and Airtree, downgraded its valuation from A$60bn ($41.8bn; £31.1bn) at the end of last year to about A$49bn. Rowe Price also marked down the value of its Canva shares by 20%, down to US$1,189 per share, giving it an implied valuation of US$30.4 billion as of August 31.
Perkins wrote in a memo to Canva’s 5,000-plus employees that the company's platform is used by hundreds of millions of people worldwide. She emphasized that the restructuring is necessary to cut through bureaucracy and enable smaller, more nimble teams, ensuring Canva remains competitive in the rapidly evolving technology landscape.
Canva's decision to refound the company comes as it adapts to new technology that is changing how people create content and what they expect from software products. The company's global reach, growing AI capabilities, and strong product foundations put it in a good position to benefit from what AI makes possible, according to Forbes Australia.
What this adds
The restructuring plan includes changes to roles, relocation requirements, and job cuts, affecting 1,271 employees, or 22% of the company's workforce.
What's confirmed
- It had been "our hardest year yet, and as we shared earlier this year, our growth has slowed for the first time in a decade," Perkins wrote to staff.
What's still developing
- Perkins, who left university at 19 to found her first venture, launched Canva in 2013.
- "For some people, this will mean changes to their roles or being asked to relocate to centralised hubs. Sadly, it will also mean saying goodbye to teammates and friends who have helped build Canva into what it is today."
- Canva entered 2026 valued at US$40 billion and as one of the world’s hottest IPO prospects, with plans to make a bigger debut on the Nasdaq than any Australian tech company before it.
- “Decisions like this are never easy, but we back Canva’s decision to make the changes needed to set the company up for its next chapter,” a Blackbird spokesperson said.
- As organisations around the world began pulling staff back to the office, Canva’s policy asked employees to work from their closest hub twice a quarter – and even this requirement was later scrapped.
- Canva is attempting to turn the AI threat into an opportunity.
- Canva did not specify how many employees would lose their jobs.