Canva Addresses Slowing Growth with Workforce Overhaul

Canva, the Australian design platform that serves more than 150 million monthly users, is undergoing its most significant internal change since its founding in 2013. Co-founder and CEO Melanie Perkins announced the restructuring on November 4, confirming that 1,271 roles, representing 22 percent of the company’s global workforce, will be affected through cuts, moves or changes in responsibilities.

Perkins described the decision as the hardest moment in Canva’s 13-year history. She noted that the company’s growth had slowed for the first time in a decade, making further small adjustments insufficient to restore momentum. Instead, the firm is refounding its structure to align with its original emphasis on small, empowered teams that can make independent decisions and focus on core priorities for its community.

The changes include combining Product, Growth and Platform into a single product organization. Canva will also eliminate layers in its management and merge narrower specialist positions into broader roles. Sydney will emerge as the primary base for additional product teams, consolidating operations in a key location.

AI-Driven Costs Prompted Forecast Revision

The slowdown in growth traces back to earlier decisions about rolling out AI features. In August, Perkins informed shareholders that Canva had lowered its 2026 revenue growth forecast from 30 percent to 20 percent. She explained that demand for new AI capabilities had exceeded expectations, leading the company to pause broad product launches until the underlying architecture, unit costs and business model could be strengthened.

Perkins stated in a Fortune interview: “Rather than broadly rolling out a product before the underlying economics were ready, we decided to slow the rollout while we rebuilt the architecture, reduced unit costs and strengthened the business model.”

Canva’s shift toward AI reflects the broader industry trend, where the design tool now competes with and incorporates generative tools that users expect in everyday workflows.

Investor Sentiment and Valuation Impact

The revised outlook triggered immediate reactions from key backers. Blackbird, one of Canva’s early investors, marked down its valuation of the company by 17 percent, from $42 billion to $34.9 billion. US fund managers T. Rowe Price and Franklin Templeton also reduced their holdings in Canva.

Early investors had already adjusted the valuation to approximately $35 billion in the months prior. These moves underscore the market’s scrutiny of Canva’s path to profitability and its ability to scale without unsustainable costs.

Employee Transition and Exit Details

Not every affected employee will lose their position. Some will transition into new roles within the restructured organization, while others may be asked to relocate to central hubs or choose to leave voluntarily. Perkins noted that departing staff will receive a generous exit package that includes at least six months of pay, the option to keep their MacBooks, one year of LinkedIn Premium, career support services and a $10,000 grant.

These terms aim to ease the transition for those leaving the company. Perkins will address the full staff during an all-hands meeting on November 10, outlining the next steps in the refounding process.

Industry Context for the Layoff Wave

The restructuring fits into a wider period of software-sector consolidation. Atlassian, WiseTech Global and other firms have also implemented substantial headcount reductions in recent months. According to Layoffs.fyi, 344 technology companies had laid off a combined 139,004 employees by early November 2026.

Canva’s move adds to the list of tech firms adapting to changing economic conditions and competitive pressures. The company has not yet set a date for its planned IPO, but Perkins indicated that the leaner structure could influence the timing by improving focus and efficiency.