Canva is laying off 1,271 employees, cutting 22% of its global workforce, as the design platform restructures amid slowing growth and intensifying competition from artificial intelligence tools.
In an internal memo to staff on Tuesday, CEO Melanie Perkins described the decision as “without doubt the hardest moment” in the company’s 13-year history. The Australian company employs more than 5,700 people across 37 countries, including India. Canva has not disclosed which teams or regions will be affected.
The layoffs follow what Perkins described as Canva’s “hardest year yet”, with growth slowing for the first time in a decade. While she did not directly cite AI in the memo, the rapid adoption of AI-powered image generation and graphic design tools has raised questions about the company’s business model.
“After exploring a wide range of alternatives, I’ve come to the difficult conclusion that small changes won’t be enough,” Perkins wrote, adding that the company needed to position itself for the next decade.
The restructuring will involve combining major teams and reducing organisational layers. Some employees may face role changes or relocation to centralised hubs. Canva has also announced that Sydney will become its primary operational base, with most hybrid employees expected to work from an office two to three days a week from January.
Support for departing employees
Canva said affected employees will receive at least six months of salary, including statutory entitlements, regardless of location. Employees who joined within the past year will have the one-year vesting cliff removed, while healthcare coverage will continue for 12 months in countries where the benefit is available.
Departing staff will also receive career coaching, interview preparation, one year of LinkedIn Premium and access to Canva Care for 12 months, including coverage for family members. They will be allowed to keep their company MacBooks and will be included in an opt-in alumni talent directory.
The company is also introducing a Canva Collective Fund, offering $10,000 grants to departing employees who wish to start a business or undertake a community project. Employees can register their interest until December 14.
Canva has lowered its projected 2026 revenue growth from 30% to 20%. The company has been expanding its AI capabilities through Canva 2.0 and recently introduced Craft, its first foundation model, which it says could make advanced AI services more efficient and create new revenue opportunities through third-party developers.
The restructuring comes amid broader job cuts across the technology sector. Layoffs.fyi estimates that more than 138,000 tech roles have been eliminated this year across 341 companies.
Source: India Today
