Canva Restructures: 22% Staff Cuts and Major Operational Overhaul Announced

Canva, the leading graphic design platform, has announced a significant organizational restructuring that will impact 22 percent of its workforce, amounting to 1,271 employees. Co-founder and CEO Melanie Perkins revealed the decision in a company-wide memo, stating that the changes are necessary to "refound" the company and return to its roots of small, empowered teams. This move marks a substantial shift in the company's operational strategy, affecting a considerable portion of its global staff. According to Perkins, the restructuring involves consolidating the Product, Growth, and Platform teams into a single product organization to simplify layers and eliminate overlapping responsibilities. The company is also centralizing its operations, designating Sydney as the primary hub for product teams and other specialized roles that require close collaboration. This consolidation aims to enhance decision-making speed and ownership among core teams, a strategy Perkins believes is critical for the next decade of growth. In addition to the layoffs, Canva is implementing new work-from-office policies. Starting in January, most hybrid employees will be expected to spend two to three days per week in the office, depending on their specific location and role. This change reflects a broader industry trend of tech companies re-evaluating remote work policies to foster in-person collaboration and innovation. Employees who are let go will receive severance packages including at least six months of salary, twelve months of healthcare coverage, and career support resources. This announcement comes on the heels of similar moves by other tech companies, such as Squarespace, which announced layoffs affecting 19 percent of its staff just yesterday. The wave of restructuring in the tech sector highlights the ongoing challenges companies face in balancing growth with operational efficiency. For Canva, this period of transition is framed not just as a cost-cutting measure, but as a strategic pivot to strengthen its core competencies and community focus.