Canva is restructuring in a move that will affect 1,271 people — 22% of its workforce — through a mix of job losses, role changes, and relocations, CEO Melanie Perkins told staff in a note posted on the company’s website on Wednesday. Why it matters: Canva is the company that made design software simple, and its first growth slowdown in a decade shows how hard the AI shift is hitting even the winners of the last era.
November 4, 2026 — Sydney
What Canva announced
Perkins called the reorganization “the hardest moment in our 13-year history” and wrote that “new technology is transforming what people can create, how they create it, and what they expect from the products they use.” She said small changes would not be enough, and that Canva needs to be “refounded” around small, empowered teams.
One precision matters here: 1,271 is the number of people affected, not a layoff count. Canva has not said how many of those employees will actually leave the company. Some will lose their jobs, some will change roles, and some will be asked to relocate to central hubs. Canva will merge its Product, Growth, and Platform teams into a single Product organization, cut narrow specializations, and remove layers of management. Sydney will become the main base for more product teams, and from January most hybrid staff are expected in the office two to three days a week.
The AI context Canva is operating in
Perkins did not explicitly blame AI for the changes. But the surrounding facts are hard to separate from it. In August, Canva cut its 2026 revenue growth forecast from 30% to 20% after the cost of delivering AI features proved higher than expected. The company has spent this year rebuilding its product around AI — including Canva AI 2.0, which lets users create and revise layered, editable designs by talking to an assistant — while AI image and design tools from rivals compress what customers will pay for template-based design. Canva says more than 250 million people use its platform each month.
Staff who do leave will receive at least six months’ salary, healthcare coverage for 12 months in countries where Canva provides it, career support, and access to US$10,000 grants for those who want to start a venture, according to reporting on the announcement.
Why it matters
Canva is squeezed from both directions at once. Generative AI makes raw design output cheaper every quarter, which pressures the subscription; serving AI features at Canva’s scale costs real money, which pressures the margin — that second pressure is literally what forced its August forecast cut. Bloomberg notes the company has been preparing for a potential stock listing, after a valuation that peaked around US$40 billion in 2021 and fell to roughly US$26 billion a year later. A leaner, simpler Canva is what Perkins is betting public markets — and AI-era customers — will pay for. For everyone building design tools, the message is blunt: the category leader just restructured a fifth of its company around this shift.
Frequently asked questions
Is Canva laying off 1,271 employees?
Not exactly. Canva says 1,271 people, 22% of its workforce, will be affected through job losses, role changes, or relocation. It has not disclosed how many will leave outright.
Why is Canva restructuring?
CEO Melanie Perkins cited the company’s first growth slowdown in a decade and a technology shift changing what people create and expect. In August, Canva also cut its 2026 growth forecast from 30% to 20%, citing the higher-than-expected cost of delivering AI features.
What severance is Canva offering departing staff?
At least six months’ salary, 12 months of healthcare coverage where provided, career support, and access to US$10,000 grants for starting a venture, according to reporting on the announcement.
Sources: Bloomberg (via BusinessWorld); YourStory.