In a move that will touch more than a fifth of its workforce, Australian digital design company Canva announced on Wednesday that 1,271 employees—about 22 percent of its staff—would be affected by a comprehensive restructuring aimed at aligning the company with a slowing growth trajectory and a revised revenue outlook.
Melanie Perkins, Canva’s CEO and co‑founder, issued a note to staff that outlined the changes: for some people, the impact would mean adjustments to existing roles or requests to relocate to the company’s centralized hubs. “It will also mean saying goodbye to teammates and friends who have helped build Canva into what it is today,” Perkins added. The letter also detailed the plan to merge Canva’s product, growth and platform teams into a single product organization, making Sydney the primary home for the newly consolidated product teams.
Canva had earlier, in August, revised its 2026 revenue forecast, cutting growth projections from 30 percent to 20 percent and lowering its internal valuation to 43.9 billion Australian dollars (roughly 30.6 billion U.S. dollars). The restructuring follows this downgrade and reflects the company’s effort to streamline operations amid competition and market pressure.
Although Perkins’ note made no direct reference to artificial intelligence, Australian Broadcasting Corporation reported that the restructure would be designed to prepare Canva to build AI‑related products. This aligns with the broader industry trend where design and content platforms are integrating AI features to stay competitive.
Canva’s decision has drawn comparisons to similar decisions at other tech firms that have sought to rethink internal structures in response to tightening market conditions. While some observers note that a 22 percent cut is significant, others highlight the potential benefits of a more focused product organization that could better respond to emerging technologies.
Employees subject to role changes or relocations were instructed to review the new structure and may need to consider options ranging from staying in their current positions, transitioning to new roles within the product ecosystem, or relocating to Sydney if required. The company’s internal communication stressed the importance of maintaining cohesion and collaboration as it moves forward with the reorganization.
In addition to operational shifts, Canva’s leadership emphasized the need to position the company for future growth in a market that increasingly values AI‑enhanced design capabilities. While CEO Perkins did not elaborate on specifics of upcoming AI initiatives, reports from Australian media outlets suggest that Canva is preparing to leverage AI both in its core offerings and in new projects that could broaden its product suite.
The restructuring also raises questions about long‑term talent retention. Employees who have been with Canva since its early days may experience uncertainty, as Perkins’ note acknowledges. The ripple effect of job cuts and role realignments could influence the company’s ability to attract and retain creative talent in the long run.
Canva’s latest announcement will be closely monitored by investors, industry analysts, and competitors alike, as the company endeavors to adapt to a rapidly evolving design technology landscape. How the new product organization will perform under a redefined growth strategy remains to be seen, but the company’s leadership signals a readiness to navigate the challenges ahead.
