By Salma El-Sakka
Australian design platform Canva has announced that about 22 per cent of its workforce, or 1,271 employees, will face job cuts, relocations or role changes as part of a major restructuring.
Hardest Year in Company History
Co-founder and chief executive Melanie Perkins described the move as the company’s “hardest moment” in its 13-year history, citing slowing growth for the first time in a decade and rising costs from integrating artificial intelligence into its products. Canva’s valuation has reportedly fallen from A$60bn to about A$49bn.
Severance and Support for Affected Employees
All affected staff will receive at least six months’ pay, 12 months of healthcare and mental health support, career coaching, job-search assistance, and the option to keep company laptops. The company is also offering $10,000 grants to those interested in starting businesses or community projects, without taking equity.
Strategic Shift Toward Centralized Hubs
As part of the restructuring, Sydney will become the main base for more product teams, and employees on hybrid arrangements will be expected to spend two to three days a week in the office from next year. Perkins said the company needs to “refound Canva” by returning to small, empowered teams.
Criticism on Social Media
On X, users criticized the rationale, with one commenter noting the irony of claiming a need to act like a startup again after 13 years by removing the people who built the company.
