The short version
- Canva is eliminating roles for approximately 1,271 employees, representing roughly one-fifth of its global workforce.
- The company is merging distinct product and growth divisions into a single entity while centralizing operations in Sydney.
- New policies require hybrid staff to work from offices two to three days weekly starting next year.
Canva, the widely used graphic design platform, has initiated a substantial restructuring that impacts approximately one-fifth of its global workforce. Co-founder and Chief Executive Officer Melanie Perkins announced the changes on Monday, confirming that 1,271 employees will be affected by the shift. This figure represents 22 percent of the company’s total staff, marking a significant contraction for the organization as it attempts to redefine its operational model for the coming decade.
Perkins framed the decision as a necessary step to refound the company, arguing that minor adjustments would no longer suffice to maintain competitive momentum. In a message to employees, she emphasized a desire to return to the organization’s origins, characterized by small, autonomous teams with the authority to make independent decisions. The goal is to foster greater ownership and focus on core community needs, stripping away bureaucratic layers that have accumulated as the company scaled.
A central component of this restructuring involves the consolidation of several major departments. Canva is merging its Product, Growth, and Platform divisions into a single product organization. This move aims to simplify internal hierarchies and eliminate overlapping responsibilities that may have hindered efficiency. By unifying these groups, leadership hopes to streamline decision-making processes and ensure that resources are directed toward the most critical initiatives without redundant oversight.
Geographic centralization is another key pillar of the new strategy. Sydney will serve as the primary hub for many product teams and specialized roles where close collaboration is deemed essential. Some employees may be asked to relocate to these centralized locations, while others will see changes to their current job functions. This shift reflects a broader trend in the technology sector toward concentrating talent in specific regions to enhance communication and cohesion among development teams.
In addition to structural changes, Canva is implementing stricter guidelines regarding remote work. Beginning in January, the company expects most hybrid employees to spend between two and three days per week in an office setting. The specific requirements may vary depending on local conditions and individual roles, but the overarching expectation is a return to regular in-person collaboration. This policy underscores the leadership’s belief that physical presence remains vital for certain aspects of product development and team dynamics.
For those leaving the company, Canva has outlined a severance package designed to provide substantial support during the transition. Departing employees will receive at least six months of salary continuation, along with twelve months of healthcare coverage. The company is also providing access to career support resources to assist individuals in finding new opportunities. These benefits reflect an effort to mitigate the immediate financial impact on affected staff while maintaining a degree of goodwill during a difficult period.
The announcement comes amid broader turbulence in the technology sector, particularly among companies offering digital tools for content creation and web development. Just prior to Canva’s disclosure, Squarespace revealed its own workforce reductions, affecting 19 percent of its employees. This pattern suggests that firms in this space are actively recalibrating their size and structure in response to evolving market conditions and economic pressures.
As Canva moves forward with these changes, the focus will likely shift toward how effectively the consolidated teams can execute on the company’s renewed strategic vision. The success of this refounding effort will depend on whether the simplified structure truly empowers employees or merely creates new bottlenecks. Observers will be watching closely to see if these measures stabilize the company’s growth trajectory and restore the agility that defined its early years.
The impact of these layoffs extends beyond immediate headcount reductions, signaling a potential shift in how tech companies manage remote work and organizational complexity. By mandating office attendance and centralizing teams, Canva is betting on proximity as a driver of innovation. Whether this approach yields the desired results remains to be seen, but it highlights the ongoing tension between flexibility and collaboration in modern workplace design.
Employees and industry analysts alike will monitor the coming months for signs of how deeply these changes penetrate the company culture. The transition from a distributed, loosely connected structure to a more centralized model could alter the pace of product development and the nature of internal communication. For now, Canva has set a clear direction, prioritizing efficiency and focused teamwork over the expansive growth patterns of recent years.
Sources behind this briefing
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- The Verge↗Canva is announcing changes and layoffs affecting 22 percent of its staff
