Canva is cutting 22 per cent of its global workforce in a seismic round of redundancies in a bid to simplify its operations.
The redundancies will affect 1,271 people and mark the first major redundancy round in the company’s 13-year history.
The Sydney Morning Herald reported this morning that Canva is merging its product, growth and platform teams into a single product organisation, while reducing management layers.
In an internal letter to staff, Canva co-founder and CEO Melanie Perkins acknowledged the decision was “incredibly hard”.
Canva was founded by Perkins in January 2013 alongside Cliff Obrecht and Cameron Adams.
“We’re simplifying layers, consolidating overlapping responsibilities, and ensuring teams have the right mix of skills and experience for the chapter ahead,” she wrote to staff.
“This means 1,271 people, or 22 per cent of Canva, will be impacted. 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.
“This is without doubt the hardest moment in our thirteen-year history. Behind every decision is someone we care deeply about, and I know the consequences will be very real for those directly affected, their families, friends and teammates.”
The letter outlined the reasons behind the changes, with Perkins describing the need to “refound” the company and return to its original operating model.
Other priorities include “getting back to our roots of small, empowered teams with the freedom to make decisions, take ownership, and focus on what matters most for our community”.
“We’re changing the way we work to provide clearer ownership, greater autonomy, and flexibility to tackle our most important goals. We want to get back to spending more time building and less time navigating how work gets done,” she added.
For those impacted by the cuts, Canva has outlined a redundancy package that includes at least six months of salary, 12 months of continued healthcare coverage in countries where Canva currently provides it.
Other measures include removing the one-year equity vesting cliff for employees who joined within the past year, dedicated career transition support, one-on-one coaching, interview preparation and a year of LinkedIn Premium.
Departing employees will also be able to opt into an alumni talent directory shared with potential employers, keep their Canva MacBook and, for those wanting to pursue an idea or start a business, access a US$10,000 grant.
The job cuts come amid questions around Canva’s financial growth.
In an article published yesterday, The Australian Financial Review’s Street Talk column reported that confidential internal data showed Canva’s annualised revenue, excluding tax, was sitting at approximately US$3.69 billion near the end of October.
That figure is reportedly around the same run-rate as the start of the year, putting the company’s US$5.2 billion annualised revenue foundation goal for 2026 further out of reach. The column also reported that Canva’s monthly active users (MAUs) had fallen by approximately 12 million compared with the same time last year.
Alongside the reported revenue challenges, the redundancies come as Canva continues to push back its initial public offering (IPO), which is now reportedly targeted for 2027. In April, it launched Canva AI 2.0, which Perkins described as the platform’s “biggest launch ever” and “the most significant moment in Canva’s history”.
The cuts add Canva to a growing list of major technology companies to have announced significant workforce reductions this year, with artificial intelligence increasingly featuring in conversations around the future of work.
Six months ago, Snap Inc. CEO Evan Spiegel told employees the company would cut approximately 1,000 jobs globally, citing changes in how work is being done across the organisation, including the growing role of AI.
Atlassian also announced 1,600 global job cuts in March this year, with approximately 480 of those roles coming from its Australian workforce.
