Canva to cut 1,271 jobs, affecting 22% of workforce

Canva is set to cut 1,271 jobs, representing 22% of its workforce, as the design platform undertakes a major organisational restructuring to prepare for its next phase of growth.

In an announcement, the company said the changes would affect its organisational structure, the locations of some teams and the roles and skills required to meet its future business needs. Some employees will be asked to relocate to centralised hubs, while others will face changes to their existing roles. The restructuring will also result in job losses.

Describing the move as the most difficult moment in Canva's 13-year history, the company acknowledged the impact on employees, their families and colleagues, and apologised for the disruption caused by the decision.

Slowing growth prompts strategic overhaul

Canva said the restructuring comes amid significant changes in the technology landscape, with emerging technologies transforming how people create content and what they expect from digital products.

The company, which has grown from an early-stage idea into a platform used by hundreds of millions of people worldwide, also acknowledged that its growth has slowed for the first time in a decade.

According to the announcement, the company had explored several alternatives before concluding that incremental adjustments would not be sufficient to position the business for the next decade.

Instead, Canva plans to undertake what it described as a process of "refounding" the company, returning to its original operating philosophy of smaller, empowered teams with greater autonomy, ownership and decision-making authority.

Focus on smaller, more agile teams

The restructuring is intended to bring back elements of Canva's original working culture, with an emphasis on streamlined teams and greater accountability.

The company said the changes are designed to help employees focus on priorities that matter most to its community while adapting to an increasingly technology-driven creative industry.

Canva also acknowledged that the decisions would involve parting ways with employees who played a significant role in building the company.

Company promises support for affected employees

Canva said it would make efforts to support all employees affected by the restructuring, recognising the personal and professional consequences of the announcement.

The company has indicated that the changes will involve three major areas of its operations, although the available announcement does not provide further details about all three measures.

The job reductions mark a significant turning point for Canva, which has spent the past 13 years expanding its global footprint and establishing itself as one of the world's leading online design platforms.

The restructuring reflects the growing pressure on technology companies to adapt their business models, workforce structures and operating strategies as artificial intelligence and other emerging technologies reshape the creative software industry.