A restructuring affects 22% of Canva’s workforce amid slowing growth

The Australian group is reorganizing its teams and announces that 1,271 employees are affected, amid job cuts, role changes, and relocations.

After more than a decade of growth, Canva is launching the biggest restructuring in its history. In a letter sent to employees on November 3, 2026, Melanie Perkins, cofounder and CEO of the Australian group, announced changes affecting 1,271 people, or 22% of its workforce. The reorganization includes job cuts, role changes, and the geographic consolidation of certain teams. The exact number of layoffs has not been disclosed.

This decision comes as the graphic design platform is experiencing its first slowdown in growth in ten years. In her message posted on Canva’s official website, Melanie Perkins acknowledges that the gradual adjustments considered so far are no longer enough to address the company’s difficulties. Management wants to rethink its organization, reduce hierarchy levels, and bring more skills together within teams responsible for end-to-end projects. Slower growth in a market transformed by AI

The slowdown has become visible in the group’s financial forecasts. In August 2026, Canva had lowered its annual revenue growth target from 30% to 20%, according to information reported by Business Insider. The company, which built its growth around democratizing graphic design tools, is now operating in an environment where many features are becoming directly accessible through AI assistants.

Image generation, visual content editing, and presentation creation can now be carried out through conversational prompts, sometimes without using a traditional design interface. This shift is changing user expectations and intensifying competition among creative platforms, software publishers, and generative model providers.

According to The Information, the company may also have faced difficulties related to the cost of its new artificial intelligence features and a decline in traffic. This information sheds light on the commercial and technical pressures the group is facing, but it is not an official explanation for the layoffs.

In her letter, Melanie Perkins more broadly refers to technological changes and new user expectations. She does not present the layoffs as a direct consequence of AI automating jobs. The restructuring is mainly justified by the need to simplify an organization that has become more complex as it has grown. Three divisions merged and fewer management layers

The first change concerns the Product, Growth, and Platform teams, which until now were organized as separate divisions. They will be brought together into a single product organization in order to reduce handoffs and coordination steps between departments.

According to management, a relatively simple service change could require successive involvement from several teams, each responsible for part of the project. This specialization, useful during periods of expansion, would have gradually slowed decision-making and fragmented accountability for results.

The second change consists of combining certain specialized functions into broader roles, while reducing management layers and overlapping responsibilities. Teams will be expected to have greater autonomy to carry out their projects from start to finish. Management thus intends to return to a way of working closer to the company’s early years, with smaller groups and fewer organizational dependencies.

The third change concerns the geographic distribution of employees. Sydney will become the main hub for several product teams, as well as other functions requiring close collaboration. Some employees will be offered relocation to these hubs, while others may change roles or leave the company.

Starting in January 2027, most employees on hybrid contracts will also be required to spend around two to three days per week in the office, depending on the arrangements applicable in their region. With a presence in 37 countries, the group will have to adapt these decisions to local regulations and individual situations. Six months’ minimum pay and a fund for departing employees

Management details several measures intended for people who will leave the company. Each will receive at least six months of pay, including statutory severance, regardless of their country of employment. Affected employees may also be eligible for 12 months of health coverage in countries where this benefit exists, as well as psychological and career support for one year.

A return-to-work support program will include one-on-one interview coaching sessions, resume-writing assistance, and a 12-month LinkedIn Premium subscription. Employees who joined less than a year ago will no longer be subject to the initial vesting period for their shares. Those leaving the group will be allowed to keep their company MacBook.

A fund called the Canva Collective Fund will also offer $10,000 grants to former employees wishing to start a business or develop a personal or community project. Applicants may submit their applications until December 14, 2026. The group states that it will take no financial stake in the supported projects.

A voluntary directory of former employees will also be shared with investors, partners, and companies that may be hiring. Melanie Perkins has directly reached out to her professional network to help connect with those affected. A new organization still being defined

The exact consequences of the restructuring are not yet fully known. The 1,271 affected employees will not all be laid off: some will keep their jobs in a different role or may need to consider relocating. Management has not disclosed the final number of departures or how they are distributed by job function, department, or country.

Those affected are expected to receive an invitation to a one-on-one meeting with a manager to review their situation and the support measures available. Leadership teams are also expected to clarify the organizational changes during the week.

A company-wide meeting is scheduled for November 10, 2026, to answer employees’ questions and present the next steps. Team-specific meetings are due to follow starting November