Canva, the design software company, announced a major restructuring affecting 1,271 employees, representing 22% of its workforce, as the company responds to slowing growth and evolving technology landscape [1]. Co-founder and CEO Melanie Perkins described the restructuring as "the company's most difficult moment in its 13-year history," noting that "our growth has slowed for the first time in a decade" [1]. The overhaul encompasses layoffs, changes to employee responsibilities, relocation requests, and a push for greater in-person collaboration, though Canva did not specify the exact number of employees who would lose their jobs [1].
The restructuring involves significant organizational changes designed to position Canva for its next phase of growth. The company will combine its product, growth, and platform teams into a single product organization, reduce management layers, consolidate overlapping responsibilities, and incorporate narrower specialized roles into broader positions [1]. Additionally, Sydney will become the primary home for more of Canva's product teams and certain other departments, with most hybrid employees expected to work from the office two to three days per week beginning in January [1]. These changes reflect Canva's adaptation to new technology that is changing how people create content and what they expect from software products [1].
Canva is providing substantial support packages for departing employees, including at least six months of salary regardless of location, 12 months of continued health care coverage in applicable countries, removal of one-year vesting cliffs for recent hires, career coaching and job-search assistance, and $10,000 grants through a new Canva Collective Fund for employees starting businesses or pursuing community projects [1]. The company, which serves hundreds of millions of users worldwide across 37 countries, is expected to provide additional details about the restructuring and future plans during a company-wide meeting scheduled for November 10 [1].
CONCLUSION
Canva's restructuring represents a significant strategic pivot as the company confronts its first decade of slowed growth and adapts to changing market dynamics in the design software space. The 22% workforce reduction, combined with organizational consolidation and increased in-person collaboration requirements, signals management's determination to improve operational efficiency and profitability. Investors will likely await the November 10 company-wide meeting for clarity on the company's growth trajectory and long-term strategic direction.