Canva restructuring affects 1,271 staff as growth slows and AI competition rises

Canva has announced a restructuring affecting 1,271 employees, representing 22% of its global workforce, as the Australian design platform confronts slower growth and increasing competition from artificial intelligence. The changes include layoffs, revised responsibilities and relocation for some staff.

The company confirmed the restructuring on November 4, 2026, but has not specified how many employees will lose their jobs. Co-founder and chief executive Melanie Perkins said Canva must change its operations after recording its first growth slowdown in a decade.

Perkins acknowledged that new technology is reshaping how people produce content and their expectations of design software. Tools from OpenAI and Google increasingly let users generate images, presentations and other designs without using traditional design software.

Canva is developing its own AI models, although that investment has added to its costs. According to TechCrunch, the company lowered its revenue growth forecast for 2026 from 30% to 20%, partly because AI-related expenses were rising. Canva has not explicitly said the layoffs result from AI replacing employees.

Under the restructuring, the Product, Growth and Platform divisions will be brought together in one organisation. Canva also plans to remove management layers, consolidate overlapping responsibilities and broaden employees’ roles.

Sydney will serve as the principal location for more product teams, meaning some employees will need to relocate. From January 2027, most hybrid employees will be expected to attend the office two to three days a week.

Employees leaving the company will receive at least six months’ salary, including statutory entitlements, wherever they are based. Canva will also provide 12 months of healthcare coverage in locations where that benefit is available.