Design software company Canva is reshaping its workforce after growth slowed for the first time in a decade, with 1,271 roles affected, according to reports. The changes were announced to staff on Wednesday in a memo from cofounder and chief executive Melanie Perkins, who described the moment as the hardest in the company’s history.
The headline number needs careful reading. According to reports, not every one of the 1,271 people affected will leave the company. Some will change roles, some will move to central hubs, and the company has not said how many departures the plan involves. That distinction matters: the restructuring is as much about how Canva is organised as about headcount.
A simpler company, centred on Sydney
Canva will merge its product, growth and platform teams into a single product organisation, reduce narrow specialisations and ask more staff to take on broader responsibilities. The aim is smaller, more empowered teams with fewer handoffs between groups.
Sydney will become the main base for more product teams, and most hybrid staff will be asked to work from an office two to three days a week from January. The shift moves Canva away from its earlier remote first approach, which at one stage asked staff to attend a hub only twice a quarter.
Slower growth and the rising cost of AI
The restructuring follows a cut in Canva’s projected revenue growth for 2026, from 30 percent to 20 percent, made in August. According to reports, the cost of serving AI features on leading outside models ran well above budget, and Canva has been building its own AI models to reduce its reliance on third party systems. The episode underlines how expensive AI infrastructure has become for software companies.
Competition is part of the story too. General purpose chatbots now let people generate posters and presentations without specialist software, and established platforms are racing to add AI features of their own. Investors are also asking harder questions of AI firms about when heavy spending will turn into profit.
Departing staff will receive at least six months of salary including statutory entitlements, 12 months of continued healthcare cover where provided, career coaching, a year of LinkedIn Premium, and the option to keep their MacBooks. A separate fund will offer $10,000 grants to departing staff starting a business or community project, and an all hands meeting is set for 10 November.
The case is a useful test of two claims that often travel together. A large affected roles number is not the same as a departures number, and a company can grow more slowly, cut its forecast and still invest heavily in AI at the same time. Whether smaller teams deliver the faster progress Perkins is seeking will be clearer when the new structure beds in.
