Sydney: Canva has announced a major workforce restructuring that will affect 1,271 employees, or 22 percent of its staff, as the Australian design platform responds to slower growth and changes in its business.
Melanie Perkins, Co-founder and Chief Executive Officer described the decision as the most difficult moment in the company’s 13-year history. The changes will not involve job losses alone. Some employees will be asked to relocate or move into different roles as part of the restructuring.
Perkins remarked that the business had experienced its hardest year so far. Growth slowed for the first time in a decade, prompting the company to make significant changes to its operations and workforce. The announcement marks a major shift for a business that expanded its international presence over the past 13 years.
The restructuring will affect employees in different ways. While some roles will be changed or moved to new locations, others will be eliminated. Perkins also acknowledged that the company would have to part ways with colleagues who contributes to Canva’s development.
Canva employs staff across 37 countries. As part of the changes, Sydney will become the main base for a larger share of the company’s product teams. The move is expected to bring more of those teams together in centralised locations.
The company also set new expectations for employees working under hybrid arrangements. From 2027, staff in hybrid roles will be expected to work from the office for 2 to 3 days each week. The policy forms part of a wider effort to reorganise teams and establish more centralised working arrangements.
The announcement comes as concerns grow over the effect of artificial intelligence (AI) on Canva’s business model. The company faces questions about how AI could affect demand for its products. The cost of integrating the technology into its platforms also added pressure.
Canva’s valuation reportedly declined over the past year. Two of its investors, Blackbird Ventures and Airtree, are reported to have reduced the company’s valuation from A$60 billion ($41.8 billion; GBP 31.1 billion) at the end of last year to about A$49 billion.
The workforce changes highlight the challenges facing the company as it adjusts to slower expansion and the growing influence of AI in the design sector. The restructuring will reshape teams and working arrangements while marking a difficult period for employees across Canva’s global operations.
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