Canva layoffs: design giant to cut or relocate more than 1,200 jobs in major restructure

Canva is cutting or relocating more than 1,200 jobs, representing 22% of its global workforce, as part of a major restructure that includes laying off staff who helped build the Australian-founded design platform.

The changes mirror a trend across the technology sector, where software companies are fighting to stay competitive against cheaper artificial intelligence disrupters while aggressively embedding AI tools themselves.

Canva’s chief executive, Melanie Perkins, said in an email to staff on Wednesday that the restructure was “without doubt the hardest moment in our thirteen-year history”.

“For some people, this will mean changes to their roles or being asked to relocate to centralised hubs,” she said. “Sadly, it will also mean saying goodbye to teammates and friends who have helped build Canva into what it is today.”

The restructure will affect 1,271 people, according to the company, as it focuses on “collapsing layers” and bringing “more teams together in person”.

“We know relocating is a big decision for those being asked to consider it, and we’re committed to making the process as smooth as possible with comprehensive support,” said Perkins, who did not specify the exact number of job losses.

Those leaving Canva will receive at least six months of salary and retain healthcare coverage for a further 12 months in countries where workers receive that benefit. They can also keep their laptops.

Those leaving can also apply for US$10,000 (A$14,000) grants to start their own ventures.

The graphic design company is one of Australia’s most successful startups and has long been touted as a candidate for a blockbuster listing on the Nasdaq.

But it has now added to a wave of restructures in the technology sector, which has included 1,600 redundancies at the software company Atlassian, and job losses at Afterpay’s owner, Block, and at WiseTech Global, another software company.

While established software companies have rejected the threat of a “SaaS-pocalypse”, a term used to describe the idea that AI becomes so advanced that specialised software becomes redundant, many have overhauled their business models in response or aggressively adopted AI tools.

Unlike Atlassian, Block and WiseTech, Canva did not mention AI in its restructure announcement.