Canva restructures workforce, affecting 1,271 employees globally

Canva, the popular graphic design platform, is undergoing a significant restructuring affecting 1,271 employees worldwide, or 22% of its workforce, as it aims to streamline operations and consolidate teams into centralised offices. CEO Melanie Perkins disclosed the decision in an email to staff on Wednesday, stating it is the most challenging moment in the company's 13-year history.

The restructuring will result in job cuts, role adjustments, and employee relocation to centralised hubs, though the exact number of job losses remains undisclosed. Affected employees will receive a minimum of six months' salary and healthcare coverage for an additional 12 months in countries where the benefit is applicable. They will also retain their company laptops and be eligible for grants of up to $10,000 (around A$14,000) to help them start their own businesses.

Perkins announced the restructuring to reduce management layers and bring teams together physically, acknowledging the challenges of relocation decisions. The company will provide extensive support to those affected. This move adds Canva to the increasing list of technology companies implementing substantial workforce reductions due to evolving market conditions and the increasing influence of artificial intelligence.

Unlike other tech giants like Atlassian, Block, and WiseTech Global, Canva did not specifically mention AI in its announcement. The restructuring echoes a broader trend of workforce reductions in the global technology industry as companies reorganise, cut costs, and focus on AI development.