Canva Slashes 22% of Workforce in Largest Restructure Since Launch

Australian design software company Canva has announced a sweeping restructure that will impact 1,271 employees, representing approximately 22% of its global workforce. Co-founder and CEO Melanie Perkins described the move as “the hardest moment” in the company’s 13-year history, marking the first major downsizing since the graphic design platform launched in 2013. The announcement comes as the company grapples with slowing growth for the first time in a decade and rising costs associated with integrating artificial intelligence into its products.

Perkins revealed the changes in a lengthy message to employees that was later published on the company’s newsroom website. The restructuring will result in layoffs, role changes, and relocation requests for some employees across 37 countries where Canva currently operates. The CEO acknowledged that behind every decision is someone the company cares deeply about, with consequences that will be very real for those directly affected, their families, friends, and teammates.

“I’m deeply sorry for the pain and disruption this will cause for everyone affected. While nothing can make this news easier, we will do everything we possibly can to support everyone affected,” Perkins wrote.

Growth Slowdown Forces Strategic Rethink

In her note to the company’s 5,000-plus employees, Perkins said Canva had reached a difficult conclusion after months of reviewing its future direction. The CEO revealed that the company’s growth had slowed for the first time in a decade, forcing leadership to explore several alternatives before determining that smaller adjustments would not be enough to prepare the business for long-term success. She emphasized that success in the company’s first chapter doesn’t guarantee success in the next, describing this as Canva‘s hardest year yet.

The restructuring comes at a critical juncture for the design platform, which has faced mounting challenges related to artificial intelligence integration. After reorganizing its platform around AI in what it dubbed Canva 2.0, the company was forced to delay rolling out several products due to the cost of serving AI to its mostly non-paying customers. Around that time, Canva also told investors it was marking down its projected revenue growth from 30% to 20%, signaling deeper financial pressures.

“New technology is transforming what people can create, how they create it, and what they expect from the products they use,” Perkins said in her note.

Valuation Markdowns Signal Investor Concerns

The workforce reduction follows a series of valuation markdowns from major investors that have significantly diminished Canva‘s market standing. New filings lodged with the SEC reveal that investment titan T. Rowe Price marked down the value of its Canva shares by 20%, down to $1,189 per share, giving the company an implied valuation of $30.4 billion as of August 31. This represents the latest in several investor markdowns the company has endured this year.

The company’s reported valuation has fallen from A$60 billion ($41.8 billion; £31.1 billion) to approximately A$49 billion, raising questions about its prospects for what was anticipated to be one of the world’s hottest IPO debuts. Canva entered 2026 valued at $40 billion and was positioned to make a bigger debut on the Nasdaq than any Australian tech company before it.

Blackbird, the company’s biggest shareholder, responded to the revenue growth markdown by cutting its internal valuation of the company by 17%. US institutions T. Rowe Price and Franklin Templeton followed with their own reductions.

Return to Startup Roots With Smaller Teams

Perkins explained that the company needed to “refound Canva” by returning to its roots of smaller, empowered teams with greater ownership and autonomy. The CEO described the changes as necessary to cut through bureaucracy and enable smaller, more nimble teams with the freedom to make decisions and focus on what matters most for the company’s community. This strategic shift represents a significant departure from the company’s recent organizational structure, which had grown substantially as it scaled globally.

“After exploring a wide range of alternatives, I’ve come to the difficult conclusion that small changes won’t be enough. To set ourselves up for the next decade, we need to refound Canva, getting back to our roots of small, empowered teams with the freedom to make decisions, take ownership and focus on what matters most for our community,” Perkins wrote.

Impact Spans Multiple Countries and Teams

The restructuring will impact people across teams and geographies within Canva‘s global network of offices and remote locations. While some employees will leave the company, others may be asked to relocate to centralized hubs or transition into new roles. As part of the restructuring, Sydney will become the main base for more of its product teams, consolidating operations in the company’s home market.

Employees working under hybrid arrangements will also face new expectations, being required to spend two to three days a week in the office from next year. This shift toward greater in-office presence marks a departure from the more flexible arrangements many tech companies adopted during and after the pandemic.

Comprehensive Support Package Announced

Canva has outlined a substantial support package for affected workers, demonstrating what the company describes as its commitment to easing the transition. Departing employees will receive at least six months of salary, including statutory entitlements, regardless of their location. This baseline support applies uniformly across all affected markets where the company operates.

Additional benefits include up to 12 months of healthcare coverage where applicable, career coaching, interview preparation, LinkedIn Premium subscriptions, and access to an alumni talent network. Employees leaving the company will also be allowed to keep their Canva-issued MacBooks, providing them with essential tools as they transition to new opportunities. In addition, the company is launching a Canva Collective Fund that will provide grants of $10,000 to eligible departing employees.

The restructuring represents a pivotal moment for Canva as it navigates the twin challenges of slowing growth and the expensive integration of artificial intelligence technology. The company’s ability to execute this transformation while maintaining product quality and customer satisfaction will prove critical to its long-term success and eventual public market debut.