Canva eliminates 22% of staff in restructuring aimed at physical consolidation

Canva is eliminating or relocating 1,271 positions, a figure that accounts for 22% of its global workforce. The company is implementing this restructure to collapse management layers and increase in-person collaboration among teams.

Melanie Perkins, the chief executive, communicated the changes to staff via email on Wednesday. She described the move as the most difficult period in the company's thirteen-year history. Perkins stated that some employees face role changes or relocation to centralized hubs, while others are departing the organization.

The decision affects individuals who contributed to the platform's development since its founding in Australia. Perkins noted that the company must say goodbye to teammates who helped build Canva into its current state. She acknowledged that relocation is a major decision for those asked to consider it and promised comprehensive support to facilitate the process.

Departing employees will receive at least six months of salary. In countries where such benefits are standard, they will retain healthcare coverage for an additional 12 months. The company also allows leavers to keep their company laptops and offers US$10,000 grants for those wishing to start new ventures.

Perkins did not provide a specific number for how many of the 1,271 positions will be fully cut versus relocated. The company is one of Australia's most successful startups and has been viewed as a potential candidate for a Nasdaq listing.

The move aligns with a wider trend in the technology sector. Competitors such as Atlassian, Block, and WiseTech Global have recently executed similar restructurings. Atlassian specifically cut 1,600 jobs, while Block and WiseTech Global also reduced headcount.

Unlike its peers, Canva did not cite artificial intelligence in its announcement. Many established software firms have responded to AI competition by overhauling business models or adopting new tools, but Canva focused its rationale on physical consolidation and structural efficiency.