Canva cuts 22% of workforce after “hardest year”

Global online design platform Canva has announced a sweeping corporate restructuring that will affect 1,271 employees—representing roughly 22 per cent of its global workforce—following what co-founder and Chief Executive Officer Melanie Perkins described as the “hardest year yet” in the company’s 13-year history.

In an emotional memo sent to staff on Tuesday, Perkins revealed that the Australian tech company is overhauling its organizational structure, collapsing management layers, and shifting teams around as it battles slowing growth and increased competition driven by emerging technologies.

While the cuts will see many staff leave the company, others are being asked to relocate to centralized hubs or transition into new operational roles.

A return to Startup roots

Founded in Sydney in 2013, Canva grew into one of the world’s most successful private software firms by simplifying graphic design for millions of users. However, rapid scaling created bloated management layers, complex team handovers, and bureaucratic gridlock between product, growth, and platform divisions.

Perkins admitted that small adjustments were no longer sufficient to secure the company’s future, adding that management felt the need to “refound Canva” by cutting through corporate layers.

“We have made the incredibly hard decision to make significant changes to how we’re organised, where some of our teams are based, and the roles and skills we need for the future,” Perkins wrote to employees.

“Over time, we’ve divided work across more and more subspecialties and teams… As we’ve grown, more of our work has become organised around team structures and narrow areas of ownership. We want to get back to spending more time building, and less time navigating how work gets done.”

Under the new operational strategy, Sydney will become the primary base for a larger share of global product teams, while hybrid employees will face stricter in-office mandates requiring two to three days on-site weekly starting in January.

Generous exit and support package

In an effort to soften the blow for departing employees—dubbed internally as “Canvanauts”—Canva introduced a severance framework that stands out from typical Silicon Valley and tech industry layoffs.

Every departing employee will receive at least six months of salary (inclusive of statutory entitlements) regardless of their geographic location. Furthermore, departing workers will be allowed to keep their company-issued MacBooks to ensure they retain immediate computing access.

Canva also established a $10,000 “Canva Collective Fund” to provide non-equity grants for former employees launching independent business ventures or community projects.

“We know that losing access to a work device is often one of the immediate challenges after a layoff, and not everyone owns a personal laptop,” Perkins noted regarding the decision to let staff keep their MacBooks.

“Please know these decisions do not diminish your talent, the value of your contributions, or the difference you’ve made here. We will do everything we can to support you in what comes next.”

The company is also offering one year of LinkedIn Premium, career coaching, resume reviews, and an opt-in alumni talent directory shared with Canva’s global network of investors and corporate partners to help former staff secure new roles quickly.