Canva is restructuring its structure, and it will affect about 1,271 people at the company, which represents 22% of the workforce. In total, many will see their jobs changed or transferred, but many others will be laid off. Melanie Perkins, the company’s CEO, issued a statement to both her employees and her website, calling the move “the most difficult moment in our thirteen-year history.” The company did not indicate how many of them would lose their jobs.
Why does it matter? Canva is one of Australia’s best-known startups and has long been considered a candidate for a major IPO Now it’s preparing to cut a fifth of its workforce, becoming another example of how AI is reshaping the market at software companies.
Details. Perkins said the company needs to “refund” itself around smaller, autonomous teams and that “small changes won’t be enough.” Its plans involve consolidating teams and moving most of its teams to Sydney, its headquarters which will host more product teams. Starting in January, most hybrid employees are expected to come into the office two to three days a week.
On the other hand, those who are laid off will receive at least six months’ pay and twelve months’ health coverage, as well as professional advice and the option to keep a company laptop. Canva will provide subsidies through a fund for those who want to leave the company to take on other projects. The deadline for submitting applications ends on December 14, the company shared.
It’s not because of the AI, but yes. The statement points to growth, not AI, as the main reason. Perkins said it was the company’s “toughest year yet” and growth slowed for the first time in a decade. Business Insider reports that in August Canva cut its 2026 revenue growth forecast from 30% to 20% and is facing new competitors as Google, OpenAI and the rest of the AI labs enter the field of AI imaging.
Perkins asserts that new technologies are changing “what people can create, how they create it, and what they expect from the products they use.” The BBC reported that Canva investors Blackbird Ventures and Airtree cut their valuation from A$60 billion to around $49 billion at the end of last year. The outlet also reports that the company’s own internal valuation has fallen as AI-related costs have increased with the rollout of new products.
Massive cuts. Canva joins a growing list of tech company employees. Among the latest examples, The Guardian noted, were 1,000 layoffs at Atlassian and many more at Block and WiseTech Global. There’s also Squarespace, which announced cuts affecting 19% of its workforce.
Potential IPO. Bloomberg notes that Canva is preparing for a potential IPO, and its valuation has jumped from $40 billion in 2021 to about $26 billion a year later. The waters are still very choppy when it comes to technology, so it remains to be seen whether this restructuring helps the company regain its rhythm so that its supposed IPO is more attractive to investors.
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