Canva Cuts 22% of Staff in First-Ever Layoffs

Canva, the Australian design platform used by hundreds of millions of people around the world, is cutting 22% of its workforce in the first company-wide redundancy round of its 13-year history.

The restructure, announced to staff on Wednesday 4 November, affects 1,271 roles. Co-founder and chief executive Melanie Perkins told employees it was “the hardest moment in our 13-year history”, as the company confronts its first slowdown in growth in a decade.

Canva employs more than 5,700 people across 37 countries, including a large workforce in the United States, where its design tools are widely used by small businesses, schools and marketing teams. The company has not disclosed which teams or countries will be hit hardest, or how many of the 1,271 affected people will leave outright.

Not all 1,271 roles are job losses

The headline figure needs careful reading. Canva said the 1,271 people affected will lose their jobs, change roles or relocate to central hubs. The company has not split the total into those three groups, so the true number of redundancies is still unclear.

That distinction matters. Some staff will be asked to move into new roles inside a slimmed-down organisation, and others will be asked to relocate, mostly towards Sydney, which becomes the main base for more of the company’s product teams. What is certain is that the restructure is the deepest shake-up Canva has attempted since it was founded in 2013.

BusinessWorld reported that the overhaul comes as artificial intelligence forces a structural reckoning at one of Australia’s highest-profile technology companies, and as Canva prepares for a potential stock market listing.

A generous exit package

For those who do leave, Canva has put together one of the more generous exit packages seen in a technology layoff round. Every departing employee will receive at least six months’ salary, including statutory entitlements, regardless of location, along with 12 months of healthcare where the company provides it, career transition support and the laptop they were issued.

Canva is also launching the Canva Collective Fund, through which departing staff can apply for grants of US$10,000 to start a business or run a project that benefits their local community. Leavers have until 14 December 2026 to register their interest.

People Matters reported that an all-hands meeting is scheduled for 10 November to discuss the restructuring and address employee questions.

Growth slows after a decade of expansion

The cuts follow a sharp reassessment of Canva’s growth. The company lowered its revenue growth forecast for 2026 to 20%, down from 30%, after its first slowdown in a decade. Revenue growth was 38% in 2025 and 45% the year before, according to reports of the announcement.

Perkins said the changes were about setting the company up to build its products in a new shape, rather than using artificial intelligence to do the work of departing staff. A Canva spokesperson told Indian media that the organisational changes were “not intended to substitute employees with AI”, after the layoffs reached the company’s India-focused content operations. Mehek Malhotra, who served as India Content Lead, said in a social media post that she was among those affected.

The restructure will merge Canva’s Product, Growth and Platform teams into a single product organisation, remove layers of management and consolidate overlapping roles. From January, most hybrid staff will be expected in the office two to three days a week.

A change of tone from March

The announcement marks a sharp change of tone from earlier this year. In March, Canva had confirmed it had no plans to lay off staff, and in January it cut only 32 jobs in its finance division. By Tuesday, rumours of a larger round were already circulating inside the company, according to Capital Brief, which reported that two employees had spoken of redundancies in November or a possible hiring freeze.

The mood across the technology sector has darkened in recent weeks. The SoftBank deal blocked by Beijing and a run of AI security deals show an industry still spending heavily on artificial intelligence, even as investors grow more selective about when that spending will turn into profit. Canva’s move suggests even the sector’s success stories are now choosing to cut costs and simplify before growth returns.

For the staff affected, the next milestone is the company-wide meeting on 10 November, when Perkins is expected to set out which teams are changing and which roles are going. Until then, many of the 1,271 will not know whether they are leaving, moving or staying.

Frequently Asked Questions

How many Canva jobs are affected?

1,271 roles, or 22% of Canva’s global workforce of more than 5,700 people, are affected by the restructure announced on 4 November 2026.

Are all 1,271 people losing their jobs?

No. Canva said the figure covers people who will lose their jobs, change roles or relocate. The company has not said how many fall into each group.

What will departing staff receive?

At least six months’ salary, 12 months of healthcare where provided, career transition support, their work laptop and the chance to apply for a US$10,000 grant from the Canva Collective Fund.

Why is Canva cutting jobs?

The company says it is restructuring after its first slowdown in growth in a decade, cutting its 2026 revenue growth forecast to 20% and simplifying its organisation around a single product team based largely in Sydney.