The wave of job cuts sweeping through the tech sector has now reached Canva. The Australian design platform announced a restructuring that will affect 1,271 employees, roughly 22% of its workforce, as part of an effort to streamline operations and realign the business with shifting market demands.
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The announcement comes in a year in which the technology industry has recorded 139,004 job losses, according to Layoffs.fyi, a tally that already includes Canva’s 1,271 roles. Canva clarified that it has not yet specified how many positions will be permanently eliminated, since the reorganization also involves role changes and transfers to other offices.
Melanie Perkins, Canva’s cofounder and CEO, informed staff of the decision in a letter to employees, acknowledging that 2026 has become one of the toughest periods for the company since its 2013 founding.
“This is, without question, the most difficult moment in our 13-year history,” she wrote in the company statement.
Perkins said that Canva’s growth has slowed for the first time in a decade, forcing leadership to rethink the company’s internal structure and how it builds products. After reviewing several options, the company concluded that minor tweaks would not be enough to prepare for the coming years.
The reorganization will merge the Product, Growth and Platform teams into a single unit. According to Perkins, the previous separation of responsibilities across multiple groups increased coordination overhead and made it harder for teams to own projects end-to-end.
Canva will also remove some organizational layers and combine roles that previously belonged to different specialties, with the goal of forming smaller teams that have more autonomy.
Another significant change is a geographic consolidation of staff. Sydney will become the primary base for a larger number of product teams, and some employees may be asked to relocate if they want to keep their positions.
Beginning in January, Canva expects most employees who currently follow hybrid schedules to come into offices two to three days per week.
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The announcement arrives as artificial intelligence reshapes design tools and the ways people produce content. Perkins acknowledged that new technologies are changing both creative possibilities and user expectations, though the company did not directly attribute the job cuts to workers being replaced by AI.
What will employees who leave Canva receive?
Canva unveiled a support package for employees who leave as a result of the restructuring. The company said departing staff will receive at least six months’ pay, which includes any legally required severance, regardless of the country in which they work.
In addition, Canva will provide up to 12 months of continued health coverage in markets where the company offers such benefits, along with one year of access to its employee assistance program for workers and their immediate family members.
Affected employees will have access to career services, interview preparation, and a one-year subscription to LinkedIn Premium. Canva also said that employees will be allowed to keep the MacBook laptops they used for work.
The company has launched the Canva Collective Fund, which will award $10,000 grants to employees who want to start a business or carry out community projects. Interested applicants have until December 14 to apply.
Perkins noted that individual conversations with impacted staff will begin right away, but the timing and procedures will vary depending on employment laws across the 37 countries where Canva operates.
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Lucas Monroe tracks the latest trends in mobile and 5G innovation. His work spans hardware analysis, telecom breakthroughs, and ecosystem development in next-gen connectivity.