Back to Flash News

Canva announces restructuring, affecting 1,271 people, or 22% of the company

Australian online design tools company Canva announced a restructuring plan on November 3. CEO Melanie Perkins said in a letter to all employees that 1,271 people, or 22% of the company, will be affected.

The affected scope includes role changes, requirements to relocate to centralized office hubs, and departures. The company did not separately disclose the number of people who will actually be laid off. Perkins said this was, without doubt, the hardest moment in the company’s 13-year history.

The reason for the restructuring is slowing growth. Perkins wrote that the company’s growth has slowed for the first time in ten years, and minor fixes are no longer enough. The company will merge its product, growth and platform teams into a unified product division and reduce management layers; Sydney will become the main location for more product teams; and starting next January, most hybrid employees will be required to come into the office 2 to 3 days per week.

Departing employees will receive at least six months of salary, including statutory compensation, regardless of country, continue to receive medical coverage for another 12 months in countries where it is provided, and may keep the company-issued laptop. The company has also set up a fund through which departing employees can apply for US$10,000 for startup or community projects.

Original source:

  1. Title: An important update on our team Publisher: Canva Publication date: 2026-11-03 URL: https://www.canva.com/newsroom/news/canva-team-update/ Nature of source: official company announcement (full CEO letter) Verification status: original text read in this report Supporting content: 1,271 people/22% affected, restructuring details, severance package and slowing growth statement

ABAB AI Insight

Canva’s official letter makes clear that the 1,271 affected people include role changes, relocations, and departures, not all of whom are layoffs. The company did not further break down the exact number.

The restructuring will integrate product-related teams and flatten management layers, while reinforcing Sydney as a hub for product teams. The hybrid work requirement will be adjusted to 2 to 3 days in the office per week, reflecting a renewed emphasis on in-person collaboration.

Perkins cited slowing growth as the background for the decision and said that small adjustments would not be enough for the next stage. The company is also providing departing employees with six months of salary, continued medical coverage, and startup funding.

The letter does not specify the share of affected employees in Australia, nor does it give a separate layoff figure. Based on the 22% figure, the company’s overall size is estimated at about 5,800 people, which is an estimate based on the company’s proportion.

ABAB News · Cognition Law

  1. Canva announced that 1,271 people are affected, or 22% of the company, including role changes, relocations, and departures.

  2. The company did not separately disclose the number of pure layoffs.

  3. Departing employees will receive at least six months of salary and 12 months of continued medical coverage.