In brief
Canva, the Australian digital design firm, will cut 1,271 jobs—about 22% of its workforce—during a major restructure that merges product, growth and platform teams into a single organization with Sydney as the hub. The change comes after the company lowered its 2026 revenue forecast from 30% to 20% and reduced its internal valuation. Media reports suggest the move is to prepare Canva for future AI‑related products, though the CEO’s note did not mention AI.
Sydney, Australia—Canva announced on Wednesday that it will restructure its workforce, affecting 1,271 employees, roughly 22 percent of its global workforce. The Australian digital design firm said the changes would involve merging its product, growth and platform teams into a single product organization, with the city becoming the main hub for more product teams.
Co‑founder and Chief Executive Melanie Perkins wrote to staff that the restructuring would mean changes to roles or relocations to centralized hubs, and that some employees would have to say goodbye to teammates and friends who helped build Canva. "For some people, this will mean changes to their roles or being asked to relocate to centralized hubs," Perkins noted. "It will also mean saying goodbye to teammates and friends who have helped build Canva into what it is today."
"For some people, this will mean changes to their roles or being asked to relocate to centralized hubs, it will also mean saying goodbye to teammates and friends who have helped build Canva into what it is today."
Perkins’ note did not reference artificial intelligence. However, Australian Broadcasting Corporation reports claim the restructure positions Canva to develop AI‑related products, indicating a strategic shift toward emerging technologies.
The announcement follows last month’s downgrade of Canva’s 2026 revenue forecast: the company cut its growth projections from 30 percent to 20 percent and reduced its internal valuation to 43.9 billion Australian dollars—about 30.6 billion U.S. dollars.
Industry observers point to the timing of the cuts as a response to slowing growth and an increasingly competitive market for digital design tools. By centralizing product teams, Canva aims to streamline decision‑making and reduce overhead costs.
Employees affected will either be placed in new roles within the merged organization or, if no suitable role is available, may face layoffs. The company has not yet outlined a precise timeline for when the changes will take effect.
Canva’s move reflects a broader trend among tech firms adjusting their structures amid market uncertainty. Similar reorganizations have been seen in other Australian tech companies, as firms seek to align resources with long‑term strategic priorities.
While the restructure will inevitably affect the lives of employees and teams across the company, Perkins emphasized that Canva will support staff through this transition. The company said it will offer outplacement assistance and career counseling to those impacted.
For employees in Sydney, the shift will mean a larger concentration of product teams in the city, potentially increasing collaboration opportunities but also intensifying operational demands. Staff outside Sydney may need to consider relocation to remain part of the core product organization.
In the coming weeks, Canva is expected to provide more details on the reorganization plan, including specific role changes, support services, and the timeline for implementation.
