Canva undergoes major restructuring, laying off 22% of workforce amid growth slowdown

Canva, the Australian design software firm, has initiated a substantial organizational overhaul, resulting in the workforce reduction or role modification for 1,271 employees, which constitutes 22% of its total staff. CEO Melanie Perkins stated in an internal communication that the company is experiencing its first growth deceleration in nearly a decade, necessitating structural changes to enhance operational efficiency. The restructuring plan involves unifying the product, growth, and platform teams into a single product organization, streamlining management tiers, and creating smaller, more empowered teams. Furthermore, the company intends to consolidate several product teams at its Sydney headquarters, requiring some staff relocation. Departing employees are guaranteed at least six months' salary, a year of health coverage, job search assistance, and a one-year LinkedIn Premium subscription. Perkins clarified that this adjustment is a response to evolving technological shifts and user expectations, rather than solely being a layoff event. Previously, Canva reported 260 million monthly active users and $3.5 billion in revenue last year, having achieved free cash flow profitability. This move follows similar organizational adjustments by other tech firms, such as Atlassian, which also announced layoffs this year.