Canva layoffs: 22% employees to exit, company offers six months' salary to affected staff

Canva is laying off 1,271 employees, equivalent to 22% of its global workforce, as the Australian design platform restructures its operations amid slowing growth. CEO Melanie Perkins announced the job cuts in an internal memo, describing the decision as the hardest moment in the company's 13-year history.

The restructuring comes after Canva experienced its first slowdown in growth in a decade. The company, which employs more than 5,700 people across 37 countries, including India, has not disclosed which teams or geographical markets will be affected.

Alongside the job cuts, Canva has announced a severance package that includes at least six months' salary, continued healthcare benefits in eligible countries and career transition support for departing employees.

Why Canva is restructuring its workforce

In her internal communication, Perkins described the past year as Canva's “hardest year yet” and said the company needed to adapt to changing market conditions.

“After exploring a wide range of alternatives, I’ve come to the difficult conclusion that small changes won’t be enough,” she wrote, adding that the business needed to position itself for the next decade.

The restructuring will involve combining major teams and reducing organisational layers. Some employees may also face changes to their roles or be asked to relocate to centralised hubs.

While Perkins did not explicitly identify artificial intelligence as a reason for the layoffs, the announcement comes amid growing competition from AI-powered image-generation and graphic-design tools.

Canva has been expanding its own AI capabilities through its Canva 2.0 initiative and the introduction of Craft, its first foundation model. The company has said Craft could help deliver advanced AI services more efficiently, while also opening its model to third-party developers.

What affected employees will receive

Canva has outlined a support package for employees leaving the company, with provisions covering financial compensation, healthcare and career transition assistance.

The announced benefits include:

• At least six months' salary, including statutory entitlements, regardless of the employee's location.

• Removal of the one-year vesting cliff for employees who joined within the past year.

• 12 months of continued healthcare coverage in countries where Canva currently provides the benefit.

• One year of access to Canva Care, its employee assistance programme, including coverage for family members.

• Individual career coaching, interview preparation and one year of LinkedIn Premium.

• The option to retain company-issued MacBooks.

• Access to individual meetings with senior leaders.

The company will also establish an opt-in alumni talent directory that can be shared with investors, partners and its wider industry network.

A separate initiative, the Canva Collective Fund, will offer grants of $10,000 to departing employees interested in starting businesses or undertaking projects in their local communities. Canva said it would not seek ownership or equity in ventures supported through the grants. Employees have until December 14 to register their interest.

Canva will also allow departing employees to retain access to Slack and Gmail until the end of the week, giving them time to communicate the news to colleagues. The company has cancelled non-critical meetings for the remainder of the week and said employees can take a day off without recording it as leave.

An all-hands meeting is scheduled for November 10 to discuss the restructuring and address employee questions.

Sydney to become Canva's primary operating base

The job cuts form part of a wider organisational shift, with Canva planning to make Sydney its primary base of operations.

Perkins said working across multiple countries had brought access to talent and other benefits, but had also made it harder for teams to collaborate on complex problems.

Most hybrid employees are expected to work from offices for around two to three days a week from January 2027. Employees asked to relocate will receive support from the company.

The move marks a change from Canva's earlier remote-first approach. The company had previously asked employees to work from their nearest office hub twice a quarter, before removing the requirement.

Slower growth adds pressure to the business

Canva's restructuring follows a reduction in its projected revenue growth for 2026. The company lowered its forecast from 30% to 20%, reflecting a more challenging growth environment.

The design software industry is also facing increasing competition from AI tools, while established platforms invest in integrating AI features into their products.

Canva has reorganised its platform around AI through Canva 2.0 and introduced Craft as its foundation model. Co-founder Cliff Obrecht has also indicated that making the model available to third-party developers could create another revenue opportunity.

However, the company has not explicitly attributed the 1,271 job cuts to AI adoption. Perkins' stated rationale centred on the need for a broader restructuring as growth slowed and the business prepared for its next phase.

Tech sector layoffs continue amid business restructuring

Canva's announcement adds to a series of workforce reductions across the global technology industry. Companies including SUSE, Squarespace and Dropbox have also announced job cuts in recent weeks.

Microsoft has introduced a voluntary exit offer covering around 60,000 employees globally, while Atlassian and Block have also undertaken significant workforce reductions.