In brief
Canva announced a major restructure on November 4, 2026 that will cut or relocate 1,271 employees, roughly 22% of its global workforce. The change comes after the company slashed its 2026 revenue growth forecast and lowered its valuation, and it is said to lay the groundwork for AI‑related products. Sources note the merging of product, growth and platform teams and the shift of Sydney into a primary product hub, while perspectives differ on the role of AI and the specifics of the layoffs.
Canva announced a major restructure on Wednesday that will cut or relocate 1,271 employees—about 22 percent of its global workforce—after the Australian‑based design firm reported slowing growth and revised its revenue outlook.
CEO and co‑founder Melanie Perkins sent a note to staff saying "For some people, this will mean changes to their roles or being asked to relocate to centralized hubs," and, she added, "It will also mean saying goodbye to teammates and friends who have helped build Canva into what it is today."
"For some people, this will mean changes to their roles or being asked to relocate to centralized hubs,"
Perkins explained that Canva’s product, growth and platform teams would be merged into a single product organization, with Sydney becoming the new centre for more product teams. The announcement follows an August downgrade of the company’s 2026 revenue growth forecast from 30 percent to 20 percent, and a cut in its internal valuation to 43.9 billion Australian dollars (about 30.6 billion U.S. dollars).
The Guardian reported that the restructure will affect more than 1,200 jobs, and that employees could be laid off or asked to relocate. The BBC echoed the cancellation of 22 percent of the workforce, noting the company’s "hardest year yet" as a trigger for the shake‑up. Both outlets emphasize that the decision follows a period of declining growth for Canva, a company that had once been celebrated for turning graphic design into a casual hobby for millions of users.
ABC Australia highlighted that the reorganisation is meant to prepare Canva for "new technology" that will change how people create and use products. While Perkins’s note did not reference AI, the Australian Broadcasting Corporation reported that the restructuring will position the company to build AI‑related products. Canvapers and industry observers speculate that the changes are an early step toward integrating generative AI tools into the platform, a move that could redefine Canva’s competitive edge.
Earlier this year, Canva had warned that it would cut its 2026 growth forecast due to a tougher competitive environment and a shift in how businesses and individuals use design software. Analysts suggested that the company’s valuation hit a new low in August, reflecting reduced investor confidence. Canberra’s plans now include a consolidated product organisation that could streamline decision‑making and speed the rollout of new features, though many employees remain uncertain about the exact nature of the changes.
Questions remain about how many of the 1,271 positions will be eliminated versus relocated, and whether the layoffs will concentrate in certain regions or functions. ABC press releases point to the possibility of relocations to Sydney, while the Guardian’s report implies that employees may face actual job cuts. These nuances illustrate the uncertainty surrounding the company's human resource strategy.
Industry analysts, such as those from Bloomberg and Seeking Alpha, have weighed in on how Canberra’s restructuring may affect its ability to compete with both large tech firms and emerging AI‑focused design startups. Some argue that a leaner workforce could enable Canva to invest more heavily in AI features, while others warn that the loss of talent could hinder innovation in the short term.
Canva’s shareholders and board members are reportedly monitoring the company’s progress closely as it navigates this transition. The internal evaluation process reportedly involved a review of performance metrics, with a view to aligning the organisation around the latest market realities. Analysts say that a pivot to AI and new technology platforms could be the key to sustaining growth in a market that now favours data‑driven, automated design solutions.
As of the latest update from Canva’s official communications, the company confirmed that the restructuring will be phased. Employees affected at the beginning of the process may receive severance packages or relocation assistance, depending on their role and location. The company also committed to maintaining transparent communication throughout the transition, offering a dedicated help portal for staff to access counselling and career‑transition resources.
Canva’s decision to concentrate more teams in Sydney underscores a strategic shift toward a more unified product culture. The move is expected to foster collaboration between product management, engineering and growth teams, potentially accelerating the development of new AI‑powered features. The reshuffling also aligns with industry trends where design firms are moving from feature‑centric to experience‑centric product frameworks.
With the restructure now in the news, stakeholders will be watching closely to see how the changes affect Canva’s innovation trajectory, employee morale, and market positioning. Keep following as new information becomes available about the exact implementation of the layoffs, the timeline for relocation, and how the company plans to integrate AI into its design ecosystem. The story remains open for further developments, particularly as Canva navigates a rapidly evolving tech landscape with increased competition from AI‑first design platforms.
