Science & technology

Canva Cuts 22% of Staff in Major Overhaul

Is this a bold move to stay competitive or a stopgap as AI outpaces its design tools?

8 hours ago·Updated 2 hours ago

Canva Cuts 22% of Staff in Major Overhaul

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Above: Canva signage at the company's headquarters in Sydney, Australia, on April 2. Image credit: Brendon Thorne/Bloomberg via Getty Images

The Facts

Australian software company Canva announced on Tuesday that it is restructuring, affecting 1,271 employees, or 22% of its workforce, in a move co-founder and CEO Melanie Perkins called "the hardest moment in our thirteen-year history."
Canva
Fox Business
BBC News
Under the overhaul, Canva will merge its product, growth and platform teams into a single product organization, cut management layers and fold narrower specializations into broader roles, meaning some employees may take on more responsibilities.
Canva
Sydney will also become the primary home for more of Canva's product teams, and from January, most hybrid staff are expected to work from the office two to three days a week. The design platform has teams across 37 countries.
Canva
Departing staff will receive at least six months' salary, including statutory entitlements and 12 months of continued health care in countries where Canva offers it, plus $10,000 grants through a new Canva Collective Fund for those starting new ventures.
Canva
The development follows multiple headwinds for Canva, which cut its revenue growth forecast from 30% to 20% in its Q2 CY2026 shareholders update due to rising AI costs, despite growth reaching 25.2% in the 12 months to June.
TechCrunch
Startup Daily
In addition, backers Blackbird and Airtree reportedly reduced Canva's valuation by 17% in August from $42 billion to around $34.9 billion. Meanwhile, an independent valuation for employee shares put the figure at $31 billion.
TNW
Capital Brief

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The Spin

Pro-industry narrative

In light of hard times, Canva must adapt to thrive. This means taking bold action to transition the company away from a bloated, fragmented structure and toward small, empowered teams capable of driving results. Nevertheless, Canva will ensure departing employees are taken care of through generous severance packages and benefits.

Canva

Industry-critical narrative

Canva's restructuring may buy it time, but it does little to change the fact that it is being outcompeted by rapidly developing AI capabilities. As the technology advances, the company's position will become increasingly difficult to defend, as AI companies give people the tools to create graphics and designs with little to no effort required.

Fast Company

Australian Financial Review