IMPLICATOR
Canva will reorganize in a shake-up that reaches 1,271 people, or 22% of its workforce, co-founder and CEO Melanie Perkins told staff. Some are leaving, while others will change roles or be asked to relocate to centralized hubs. The company would not confirm how many of the affected staff are expected to lose their jobs.
This is Canva's first-ever company-wide redundancy round, though it has made smaller cuts before. In 2025, 10 of its 12 technical writers lost their jobs. Earlier this year, it cut 32 jobs in its finance division.
"This is without doubt the hardest moment in our thirteen-year history," Perkins wrote.
What Changed
- Canva's restructuring reaches 1,271 people, or 22% of its workforce, through departures, role changes or relocation.
- The company would not confirm how many of the affected staff are expected to lose their jobs.
- Product, Growth and Platform teams move into one product organization, and Sydney becomes the primary home for more product teams.
- Canva downgraded its revenue forecast by a third, to 20% this year, and cut its own valuation.
AI-generated summary, reviewed by an editor. More on our AI guidelines.
The memo's reasons
Perkins wrote that "our growth has slowed for the first time in a decade" and that "small changes won't be enough." She wants to "refound Canva" around small teams.
Canva will bring its Product, Growth and Platform teams into one product organization. Perkins said improving one part of the product often meant "more handovers and coordination than necessary." The company will also fold narrower subspecialties into broader roles and simplify layers. Sydney will become the primary home for more product teams, and from January most hybrid staff are expected in the office around 2 to 3 days a week.
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The AI question
Perkins did not directly link the cuts to the rise of artificial intelligence. She wrote that new technology is altering "what people can create, how they create it, and what they expect from the products they use."
Canva has created its own generative AI systems, including image generators and agents. The company, like many other software-as-a-service firms, faces disruption from free generative AI tools that allow people to complete projects they once needed dedicated software or web applications for. Information Age understands the rise of those tools is also changing the skills Canva requires and how it structures its teams.
Canva delayed the rollout of its biggest AI-led software update because the cost of running AI for its more than 200 million free users was eating into its profits. "The cost of goods to serve a user has gone from cents per month to many, many more cents," co-founder Cliff Obrecht said in August.
Investors and the IPO
Canva downgraded its revenue forecast by a third, to 20% this year. Sales grew 38% in 2025 and 45% the year before. It also cut its own valuation. Blackbird, its biggest venture capital backer, cut its valuation of the company by 17% in August.
An IPO once expected for 2027 has reportedly been shelved. Canva has said it will list when it makes sense, and that it is in no rush. Airtree, another venture investor, asked its own investors in August to extend its first fund to July 2028 in the hope that Canva floats or offers another exit.
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Blackbird, which owns about 10% of Canva, backed the move. "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 spokeswoman said.
Other software cuts
Investor fears that AI will undercut software businesses have hammered design companies. Shares in rival Figma have plunged 44% this year despite strong revenue growth. Atlassian cut 1,600 jobs in March, the same month WiseTech Global said it would slash 2,000, nearly a third of its workforce. Squarespace announced layoffs affecting 19% of its staff the day before Canva's note.
What departing staff get
Departing Canva staff get at least six months of salary, inclusive of statutory entitlements, and twelve months of healthcare where Canva provides it. They keep their work MacBooks. They have until December 14 to register interest in $10,000 grants to start something of their own.
Perkins will address staff at a company-wide meeting on November 10 "to talk through these changes, answer questions, and share more about the path ahead."
Frequently Asked Questions
How many Canva employees are losing their jobs?
Canva says 1,271 people, or 22% of its workforce, are affected. Some are leaving, while others will change roles or be asked to relocate. The company would not confirm how many of the affected staff are expected to lose their jobs.
Why is Canva restructuring?
CEO Melanie Perkins wrote that the company's growth has slowed for the first time in a decade and that small changes won't be enough. Canva will bring its Product, Growth and Platform teams into one product organization.
Did Perkins blame AI for the cuts?
Perkins did not directly link the cuts to the rise of artificial intelligence. Canva delayed its biggest AI-led software update because the cost of running AI for its more than 200 million free users was eating into its profits.
What does this mean for a Canva IPO?
An IPO once expected for 2027 has reportedly been shelved. Canva has said it will list when it makes sense, and that it is in no rush.
What do departing Canva staff receive?
They get at least six months of salary, inclusive of statutory entitlements, and twelve months of healthcare where Canva provides it. They keep their work MacBooks and have until December 14 to register interest in $10,000 grants to start something of their own.
AI-generated summary, reviewed by an editor. More on our AI guidelines.
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Marcus Schuler
Editor-in-Chief and founder of Implicator.ai. Former ARD correspondent and senior broadcast journalist with 10+ years covering tech. Writes daily briefings on policy and market developments. Based in San Francisco. E-mail: editor@implicator.ai
