Ing. Pietro Maiorana
Canva, the Australian graphic design platform, has announced a restructuring that affects 1,271 employees, 22% of its staff. The news came through an internal message from co-founder and CEO Melanie Perkins, later made public. Some people will lose their jobs, others will change roles or have to relocate. For those who use Canva every day, and for anyone working in digital, the case shows how even a growing company is rethinking the way it works.
A few terms, before we get into the facts. Restructuring means a change in how teams are organized, not necessarily just cuts. Product Org is the name of the new unit that brings together the Product, Growth and Platform teams. Hub is a central office where teams are concentrated, here mainly Sydney. Free cash flow is the cash left over after expenses and investments. Private company means not listed on the stock market, so it has fewer obligations to publish its accounts.
What did Canva announce?
According to The Verge, Canva is making significant changes that affect 1,271 people, 22% of staff. As reported by The Register, these people risk being laid off, changing roles or being asked to relocate. HDblog also confirms the figures.
Perkins writes that for some it will mean "saying goodbye to colleagues and friends who helped build Canva".
Why is Canva changing its structure?
The message speaks of new technology that transforms what people create and expect from products. According to The Register, the text does not cite AI and does not point to financial pressure. Perkins does note, however, that growth has slowed for the first time in ten years.
The CEO writes that "small changes will not be enough" and that it is necessary to "rebuild Canva", returning to small, autonomous teams. These are her words, not independent verifications.
How does the internal organization change?
Product, Growth and Platform come together in a single "Product Org". Perkins talks about simplifying layers and merging overlapping responsibilities. Sydney becomes the main hub for several product teams, and some employees will be asked to relocate, with "full support" promised.
According to The Verge, from January Canva expects most hybrid employees to be in the office 2 to 3 days a week.
What do people who leave receive?
The sources agree on at least six months of salary and twelve months of health insurance, plus support in finding a new job. According to The Register, those who leave can keep the company MacBook and receive a year of LinkedIn Premium.
Those involved receive an invitation to an optional one-on-one meeting with a manager. The others attend two meetings the following week.
Limits to know
We don't know how many of the 1,271 will be laid off, how many will change roles and how many will have to relocate, because the CEO does not specify. It is unclear what role AI played in the decision. Canva is private, so its financials cannot be verified. On efficiency and slowing growth, we only have the company's own version.
What changes for those working in digital
For those who use Canva for work, there are no announcements about features or pricing, so nothing changes in the short term. It is worth remembering, however, that a provider in restructuring can shift priorities and products. Anyone building on third-party tools should keep their files in exportable formats. Those looking for work in design or product will face leaner teams. For small businesses, the ways AI saves time are already part of the discussion.
Our take
The message is skillful. Perkins apologizes three times, offers a severance above the average and talks about returning to its roots. But cutting 22% of a company that reports 3.5 billion dollars in revenue and cash profit calls for more explanation than "inefficiency". The silence on AI is telling, since the new technology is cited as a cause without being named. We see the same pattern in many companies, as in the debate on how to adopt AI without wasting budget.
Frequently asked questions
How many Canva employees are affected?
There are 1,271 people, 22% of staff. Not all of them will lose their jobs, because some will change roles or have to relocate.
Did Canva cite artificial intelligence as a cause?
No, according to The Register the message does not mention AI. It does, however, speak of new technology that transforms what people create.
What do employees who leave receive?
At least six months of salary, one year of health coverage and support in finding a job. According to The Register, they can keep their company MacBook.
Does this change anything for Canva users?
For now there are no announcements about products or pricing. The restructuring concerns internal teams.
Where will Canva's teams work?
Sydney becomes the main hub for several product teams. From January, most hybrid staff will be expected to be in the office 2 or 3 days a week.
What to watch at Canva after the new Product Org
The coming months will show whether the restructuring really changes the product. The details the company has not yet given matter most.
- Check whether announcements on features, plans and pricing arrive after the teams are merged.
- Watch whether Canva publishes the actual number of departures and relocations.
- Follow whether other Australian or design companies take the same path after Atlassian.
