Canva Cuts 22 Percent of Workforce to Refound Company

CEO Melanie Perkins announced a major restructuring of Canva on November 3, 2026, resulting in the layoff of 1,271 employees, or approximately 22% of the workforce. The reorganization follows a decade of expansion, though Perkins noted that growth has slowed for the first time in ten years. Consequently, the company lowered its 2026 revenue growth forecast from 30% to 20%.

To streamline operations, Canva is merging its product, growth, and platform teams into a single Product Org and reducing management layers. The company is also centralizing product teams in Sydney and requiring hybrid employees to work from the office two to three days a week starting in January. Co-founder Cliff Obrecht attributed some of the financial pressure to the increased cost of serving users due to AI.

Departing staff will receive at least six months of salary, 12 months of healthcare coverage, and the option to keep their company MacBooks. Canva is also establishing the Canva Collective Fund to provide $10,000 grants to former employees starting their own businesses. The restructuring comes amid a broader downturn in the Australian tech sector and intensifying competition from AI tools.