Canva, the Australian design software company, has announced a major restructuring that affects 1,271 employees, about 22% of its workforce. Co-founder and CEO Melanie Perkins told staff on Wednesday, 4 November 2026, that the changes will mean job cuts, role changes and relocations.
What Canva Announced
According to Reuters, the company said it would reshape its organisational structure, team locations and staffing needs. Human Resources Director described it as the first redundancy round in Canva’s 13-year history.
Perkins called it without doubt the hardest moment in the company’s 13-year history, as reported by Australian Associated Press. Canva has not confirmed how many of the 1,271 people will lose their jobs, according to Implicator, so the figure covers departures, role changes and relocations together.
Why Canva Says It Is Restructuring
Perkins wrote to staff that it had been the company’s hardest year yet and that growth had slowed for the first time in a decade, according to the BBC. She said new technology is transforming what people can create and what they expect from the products they use.
The Verge reports Perkins said small changes would not be enough to prepare Canva for the next decade. Human Resources Director wrote that she said the company must refound itself, with management layers stripped out and more teams moving to Sydney.
Canva has said the cuts are not about replacing staff with AI, according to an Australian Associated Press headline. I could not read the full AAP article, so check the exact wording before quoting it.
Where Teams Will Work
The BBC reports that Sydney will become the primary home for more of Canva’s product teams, and that from next year hybrid workers will be expected in the office two to three days a week. Some employees will be asked to move to centralised hubs. Canva has staff in 37 countries, the BBC says.
Support for Departing Staff
The Verge reports that employees who leave will receive at least six months of salary, 12 months of medical insurance and resources to find a new job. Reuters reports the company will provide $10,000 grants to departing employees through a new Canva Collective Fund, to support their next ventures.
Valuation and the AI Question
The BBC reports, citing earlier coverage, that two of Canva’s backers, Blackbird Ventures and Airtree, cut their valuations of the company from about A$60 billion at the end of last year to about A$49 billion. It also reports that Canva cut its own internal valuation amid rising AI costs for new products. These are reports of valuations and not market prices, because Canva is privately held.
An earlier Capital Brief report, cited by People Matters, said Canva could cut jobs or freeze hiring in November, and that Perkins had told investors the revised outlook was below the company’s original expectations. A Hindi Business Standard report says Canva is also preparing for an IPO, but I could not confirm that elsewhere.
Part of a Wider Pattern
The announcement came a day after website builder Squarespace said it would cut about 19% of its staff, according to The Verge. TrueUp data cited by People Matters showed 679 technology companies announced layoffs in 2026, affecting 198,882 people at the time of that report. These tallies change daily.
Why It Matters
Canva is one of Australia’s best-known start-ups, and its tools are used by people without design training to make presentations, invitations and social posts. The restructuring shows how even fast-growing software firms face pressure from AI-driven competition and rising computing costs. For employees and users in India and elsewhere, it is a sign that generative AI is reshaping how software companies organise their work.
What Happens Next
Affected employees will be told about their individual situations in the coming days. Watch for how many roles are cut as opposed to changed, any details on the new hubs and what changes Canva makes to its product plans. Investors will look for whether growth recovers.
FAQs
How many Canva employees are affected?
1,271 people, about 22% of the workforce.
Are all of them losing their jobs?
No. Some will lose jobs, others change roles or relocate. Canva has not given a job-loss figure.
What reason did Canva give?
Growth slowed for the first time in a decade, and AI is changing what users expect.
What support will departing staff get?
At least six months of salary, 12 months of medical insurance and a $10,000 grant, per reports.
Where will the teams be based?
More product teams will be based in Sydney, according to the BBC.
Is Canva publicly listed?
No. It is privately held.
