Canva has announced a major restructuring affecting 1,271 employees, or 22% of its global workforce, as the Australian design platform faces slowing growth and growing competition from artificial intelligence.
The company confirmed the changes on November 4, 2026. Some employees will lose their jobs, while others will have their responsibilities changed or be asked to relocate.
However, Canva has not disclosed exactly how many employees will be laid off.
Why Is Canva Cutting Jobs?
Canva co-founder and CEO Melanie Perkins said the company needs to change how it operates after experiencing its first slowdown in growth in a decade.
She acknowledged that new technology is changing how people create content and what they expect from design software.
The restructuring comes as AI tools from companies such as OpenAI and Google increasingly allow users to create images, presentations, and other designs without relying on traditional design software.
Canva is also investing in its own AI models, but these efforts have increased costs.
According to TechCrunch, Canva reduced its 2026 revenue growth forecast from 30% to 20%, partly because of rising AI-related expenses.
While AI competition forms part of the business challenges facing Canva, the company has not explicitly attributed the layoffs to AI replacing employees.
Major Changes to Teams and Offices
As part of the restructuring, Canva will combine its Product, Growth, and Platform divisions into a single organization.
The company will also reduce management layers, merge overlapping responsibilities, and give employees broader roles.
Sydney will become the main location for more product teams, requiring some employees to relocate.
Starting in January 2027, most hybrid employees will also be expected to work from the office two to three days per week.
Laid-Off Employees to Receive Six Months’ Salary
Canva has announced several benefits for employees leaving the company.
Affected employees who depart will receive at least six months of salary, including statutory entitlements, regardless of location.
They will also receive 12 months of healthcare coverage where available, along with continued access to the company’s employee assistance program.
Canva will let departing employees keep their company-issued MacBooks and provide career coaching, interview preparation, and one year of LinkedIn Premium.
Additionally, the company is offering $10,000 grants to eligible departing employees who want to start businesses or community projects. Applications are open until December 14.
The restructuring comes during a challenging period for Canva, which is adjusting its operations while facing increased competition and costs associated with AI technology.
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