Aussie Adobe assailant Canva announces layoffs in re-org affecting 22% of staff

No mention of AI, but a nod to the pace of technological change

Australian design software maker Canva is restructuring, with 1,271 employees, or 22 percent of its workforce, facing layoffs, changes to their roles, or requests to relocate.

The company, which has become a challenger to Adobe, announced the news by sharing a message that CEO Melanie Perkins sent to staff on Wednesday.

That missive, titled “An important update on our team,” doesn’t mention AI but does state “New technology is transforming what people can create, how they create it, and what they expect from the products they use.”

REG AD

Perkins observed that Canva’s rate of growth recently slowed for the first time in a decade and shared her view that continued success won’t happen without change.

REG AD

“After exploring a wide range of alternatives, I've come to the difficult conclusion that small changes won’t be enough,” she wrote. “To set ourselves up for the next decade, we need to refound Canva, 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.”

The CEO did not say how many jobs would go, but argued the changes are necessary because the company has become inefficient.

The changes will therefore see Canva combine its product, growth and platform teams into a single “Product Org,” which Perkins says means “changing the way we work to provide clearer ownership, greater autonomy and flexibility to tackle our most important goals.”

She characterized the changes as “simplifying layers, consolidating overlapping responsibilities, and ensuring teams have the right mix of skills and experience for the chapter ahead.”

The CEO three times described herself as “deeply sorry” for the changes.

Affected staff will receive a calendar invite for an optional individual meeting with a senior leader. Remaining staff get to attend two rounds of meetings next week – one company-wide affair and another with their reorganized teams.

Another of Perkins’ decisions will see Canva move more of its product teams to its headquarters in Sydney, Australia. The company will ask some staff to relocate and has promised “comprehensive support” to make that happen.

Departing staff can keep their company-issued MacBooks and will receive at least six months' pay, a year of health insurance, plus various forms of support to find a new gig including a one-year membership of LinkedIn Premium.

REG AD

Perkins’ post does not cite financial pressures as a reason for the layoffs. Canva is privately held and does not face the same financial disclosure requirements as a listed business, but last year revealed it had 260 million monthly users and revenue of $3.5 billion. Execs have previously claimed the company is profitable on a free-cash-flow basis.

Canva and Atlassian are among Australia’s most successful and celebrated technology businesses. Both have now announced job cuts this year. ®