After growth slowed, CEO Melanie Perkins proposes a return to the small, autonomous teams that defined the company’s early days.
What You Need to Know
- Australian company: Canva, which has teams in 37 countries, is restructuring 22% of its workforce, although not all 1,271 affected employees will be laid off.
- Most difficult period: After its first growth slowdown in a decade, Canva is facing the toughest period in its 13-year history and plans to return to the small, autonomous teams that defined its early days.
- Severance package: Employees leaving Canva will receive at least six months’ pay, 12 months of health coverage in countries where the benefit is offered, and, in some cases, a $10,000 grant to start a business or develop a community project.
In an official statement published Tuesday (Nov. 3), Canva said it is facing the most difficult moment in its 13-year history, according to CEO Melanie Perkins. The company has put design tools in the hands of hundreds of millions of people.
Perkins said deep changes are needed. The rallying cry: “refound” the company by returning to smaller, autonomous teams with more freedom to make decisions.
What Triggered the Restructuring: Slowing Growth
According to Perkins, Canva’s growth slowed for the first time in a decade. She said small tweaks wouldn’t be enough to meet the moment.
Who Is Affected, and How
Canva has more than 5,000 employees, according to Forbes Australia. The 1,271 affected employees, or 22% of the workforce, won’t necessarily all lose their jobs. Some will see their roles change, while others may need to relocate to work from centralized offices. Others will leave the company.
Canva has not said how many employees will ultimately be laid off.
Fewer Layers, More Responsibilities
The Product, Growth, and Platform teams will be merged into a single Product organization. The company also plans to flatten its management structure and consolidate overlapping responsibilities.
Canva is headquartered in Sydney, Australia. It has teams spread across 37 countries and serves users in more than 190. Sydney will also become the main hub for more product teams. Starting in January 2027, the company expects most hybrid employees to spend two to three days a week in the office.
The Elephant in the Room: AI
The official statement mentions “new technologies” but doesn’t explicitly name artificial intelligence.
Still, AI is clearly part of the picture. According to The Information, Canva has invested more than $1 billion in developing its own AI models. The company also faces high costs to offer these features, along with competition from tools like ChatGPT and Gemini.
Fortune reported that Canva cut its 2026 revenue growth forecast from 30% to 20% after AI costs came in higher than expected.
In August 2026, investors Blackbird Ventures and Airtree marked down their valuations of Canva by 17%, from $42 billion to $34.9 billion, according to Capital Brief.
The Exit Package
Employees who leave the company will receive at least six months’ pay, on top of any applicable legal entitlements, plus 12 months of health coverage in countries where the benefit is offered.
Canva also promises support in finding new job opportunities. For some recent hires, the one-year vesting cliff for equity will be waived.
In addition, a new fund will provide $10,000 grants to employees who want to start a business or launch a community project.
The Road Ahead
Canva is one of Australia’s biggest tech success stories. Now, it’s betting that a leaner structure will help it move faster.
The challenge will be sustaining its ability to innovate in a market increasingly reshaped by artificial intelligence.