Canva to restructure operations, affecting 22% of workforce

Canva is restructuring its operations in a move affecting 1,271 employees, or 22% of its workforce, as the design software company responds to slowing growth and changes in the technology industry.

Organizational Changes

The overhaul includes layoffs, changes to employee responsibilities, relocation requests, and a push for greater in-person collaboration. Under the new structure, Canva will combine its product, growth, and platform teams into a single product organization. The company also plans to reduce management layers, consolidate overlapping responsibilities, and incorporate narrower specialized roles into broader positions.

Canva co-founder and CEO Melanie Perkins described the restructuring as the company's most difficult moment in its 13-year history. "This has been our hardest year yet, and as we shared earlier this year, our growth has slowed for the first time in a decade," Perkins wrote in a message to employees.

Workplace and Location Shifts

The restructuring will affect where and how employees work. Sydney will become the primary home for more of Canva's product teams and certain other departments. Additionally, beginning in January, most hybrid employees are expected to work from the office two to three days per week, depending on their location.

In India, the restructuring has impacted content operations. Mehek Malhotra, who served as India Content Lead at Canva, disclosed in a social media post that she was among those affected. While the company has not disclosed the total number of employees affected in India, the departure of an executive has raised questions regarding the future of local design and localization functions.

Regarding the role of technology, a Canva spokesperson clarified that while technology is changing the products the company develops, the organizational changes are not intended to substitute employees with AI. "These changes are about setting Canva up to build those products, not using AI to do the work of people who are leaving," the spokesperson said.

Employee Support Packages

For employees leaving the company, Canva stated it will provide severance packages that include at least six months of salary, inclusive of legally required entitlements, regardless of location. Other support measures include:

• 12 months of continued health care coverage in countries where the benefit is currently offered.
• Removal of the one-year vesting cliff for employees who joined within the past year.
• Career coaching, interview preparation, and job-search assistance.
• Departing employees may keep their company MacBooks.
• $10,000 grants through a new Canva Collective Fund for departing employees who wish to start a business or pursue a community project; the company stated it will not seek ownership or equity in these projects.

Why it matters

The restructuring comes as Canva adapts to new technology that is changing how people create content and what they expect from software products. The company is scheduled to hold a company-wide meeting on November 10 to discuss the changes.

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Sources

• foxbusiness.com: Canva restructuring to affect 1,271 employees, 22% of workforce, as growth slows | Fox Business
• storyboard18.com: Canva layoffs hit India content operations as global restructuring impacts 22% of workforce - Storyboard18
• investing.com: Canva cuts 22% of workforce as growth slows for first time By Investing.com
• exchange4media.com: Canva to cut 1,271 jobs, affecting 22% of workforce
• mi-3.com.au: Canva cuts deep as growth stalls for first time in a decade, with 22% of workforce caught in sweeping restructure | Mi3
• cxodigitalpulse.com: Canva to Restructure Workforce, Affecting 1,271 Employees Amid Growth Slowdown

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.