Canva Announces Major Restructuring Affecting 22% of Its Workforce

Canva, one of Australia’s best-known start-ups, has announced a major restructuring that will affect 22% of its workforce. The changes include job cuts, employee relocations and role adjustments.

Co-founder and Chief Executive Melanie Perkins described the decision as the hardest moment in the company’s 13-year history. She said 1,271 employees would be affected by the restructuring.

In a message to staff on Wednesday, Perkins acknowledged the difficult position facing the company.

She said the past year had been its hardest yet. Growth had also slowed for the first time in a decade, despite years of expansion.

“For some people, this will mean changes to their roles or being asked to relocate to centralised hubs. Sadly, it will also mean saying goodbye to teammates and friends who have helped build Canva into what it is today,” Perkins wrote.

Canva Shifts More Product Teams to Sydney

The restructuring will also change how Canva organises its workforce across international offices.

The company has employees in 37 countries. However, Sydney will become the primary base for more of its product teams.

Canva also plans to strengthen its office-based working arrangements. From next year, employees on hybrid contracts will be expected to spend two to three days a week in the office.

The changes form part of a broader organisational adjustment as the company reviews its operations and future priorities.

AI Costs and Slower Growth Put Pressure on Valuation

Canva’s restructuring comes amid concerns about the impact of artificial intelligence on its business model and operating costs.

The company has faced rising expenses as it incorporates AI technology into its platforms and launches new products.

Its valuation has also reportedly declined over the past year. Earlier this year, investors Blackbird Ventures and Airtree reportedly reduced their valuation of Canva from A$60 billion at the end of last year to approximately A$49 billion.

The company also reportedly lowered its own internal valuation amid increasing AI-related expenses.

Perkins acknowledged the wider changes taking place across the technology sector. She said new technology was transforming what people could create, how they worked and what they expected from digital products.

Trump Announces Plan to End $4 Billion Annual US Aid to Israel After 2026

Canva Faces a Changing Digital Design Market

Perkins founded Canva in 2013 after leaving university at the age of 19. The platform aims to make graphic design accessible to people without specialist technical skills or professional design experience.

Its tools and templates allow users to create a wide range of visual content. These include wedding invitations, business presentations and professional pitch decks.

The company built its business by simplifying design tasks for individuals and organisations. However, the rapid development of AI is changing the digital design market and raising new competitive challenges.

The restructuring marks a significant shift for Canva as it adjusts its workforce, operating model and product strategy amid slower growth and rising technology costs.