Canva Announces Layoffs Impacting 1,271 Employees
In a significant restructuring effort, Canva reveals it will lay off 22% of its workforce, marking a challenging moment in its history.
Canva will cut 1,271 jobs, affecting 22% of its global workforce.
CEO Melanie Perkins describes this year as the hardest in the company's 13-year history.
Affected employees will receive a support package, including severance and career assistance.
Canva, the Australian design software company, has announced a major restructuring that will result in the layoffs of 1,271 employees, which is approximately 22% of its global workforce. This decision, described by co-founder and CEO Melanie Perkins as the most challenging moment in the company's 13-year history, comes as Canva faces slowing growth and seeks to redefine its organizational structure for future success.
The announcement was made in a detailed message to employees, outlining the necessity of these changes after months of evaluating the company's direction. Perkins acknowledged that the restructuring would lead to layoffs, role changes, and requests for some employees to relocate. This marks the first time in a decade that Canva's growth has slowed, prompting the leadership to explore various alternatives before concluding that substantial changes were necessary.
As part of the restructuring, Canva will merge its Product, Growth, and Platform divisions into a single Product Organization. This move aims to streamline operations, reduce internal handovers, and provide clearer ownership over projects. The company will also be consolidating roles and reducing specializations to empower teams with broader responsibilities. Additionally, Sydney will become the primary base for more product teams, with some employees being asked to relocate.
To support those affected by the layoffs, Canva has outlined a comprehensive support package. Departing employees will receive at least six months of salary, healthcare coverage for up to 12 months, and access to career coaching and interview preparation services. Furthermore, the company is launching a Canva Collective Fund, offering grants to eligible employees interested in starting their own businesses or community projects.
Looking ahead, Canva's immediate focus will be on facilitating conversations with impacted employees to discuss next steps and available support. The company is committed to ensuring a smooth transition for those affected, while also emphasizing the importance of maintaining privacy during this difficult time. As Canva navigates this challenging chapter, it aims to return to its roots of smaller, empowered teams to foster innovation and growth.
