Canva, a well-known Australian design startup, has announced a major organizational restructuring affecting 22% of its global workforce, or 1,271 employees. This includes layoffs, role changes, and relocations as the company faces slowing growth and pressure from advances in artificial intelligence technology. The CEO admitted this is the most challenging period in the company's 13-year history.
Melanie Perkins, CEO and co-founder of Canva, sent an email to staff announcing the major restructuring affecting 1,271 employees, which represents 22% of the global workforce. She emphasized it is "undoubtedly the most difficult time in the company's 13-year history," following the company's most challenging year and the first revenue growth slowdown in a decade.
The restructuring plan includes layoffs, reductions in management levels, role changes, and asking employees to relocate to main hubs to encourage more face-to-face collaboration. The company aims to make its Sydney headquarters in Australia the primary base for product development teams. Hybrid employees will be required to work from the office at least 2-3 days per week starting next year.
For employees leaving Canva, a comprehensive support package has been prepared, including a minimum six months' severance pay, 12 months' extended health insurance coverage in countries offering this benefit, permission to keep their laptops, and $10,000 USD (about 340,000 baht) in funding to help start their own businesses.
This workforce reduction comes amid business pressures, despite Canva being one of Australia's most successful startups and eyed for a U.S. Nasdaq listing. Over the past year, major venture capital firms Blackbird Ventures and Airtree have reduced Canva's valuation from AUD 60 billion to about AUD 49 billion. Canva itself has lowered its internal valuation due to rising costs for developing and integrating AI technology and concerns about competition from new AI tools in the market.
Canva's move reflects a wave of major restructuring and layoffs in the global tech and software industry as companies rush to adapt and bear the rising costs of AI development to remain competitive. Previously, leading tech companies like Atlassian announced cuts of over 1,600 jobs, while others such as Block (Afterpay's parent) and WiseTech Global have also downsized their organizations.
Canva was founded in 2013 by Melanie Perkins, who left university at age 19 to start her own business. The company developed a platform enabling users to create professional-level graphics and presentations without needing design or technical skills, covering everything from wedding invitations to business plan presentations.