Sydney, November 4: Popular design tool platform Canva’s CEO Melanie Perkins has announced a corporate restructuring plan, which involves role shifts and job cuts for 1,271 employees, about 22% of its total global workforce. Melanie described this as the hardest moment in the 13-year company’s history, as the popular design tool competes with emerging artificial intelligence (AI) image-generation tools amid slowing growth.
It still isn’t clear which teams will be affected, but this involves significant role adjustments and mandatory relocations to central operational hubs. With growth moderating, the company’s leadership has been forced to streamline operations and phase out niche specializations to boost technical agility.
Impacted team members are expected to receive transition support, severance packages and support initiatives like the Canva Collective Fund to help affected staff members explore new entrepreneurial ventures.
In an internal memo shared with staff and later published publicly, CEO Melanie Perkins acknowledged the challenges with the decision, while detailing the necessity of the move.
“For some people, this will mean changes to their roles or being asked to relocate to centralised hubs. Sadly, it will also mean saying goodbye to teammates and friends who have helped build Canva into what it is today.” she said.
This development comes at a time when the company is facing increasing challenges with its business model, with two of its investors- Blackbird Ventures and Airtree, downgrading its valuation from A$60 billion at the end of 2025 to about A$49 billion today.
In response to the competition, Canva has also integrated AI into its platform, but has had to opt for a leaner workforce considering the market challenges.
