Canva Layoffs 2026: 1,271 Employees Face Job Cuts, Role Changes And Relocation

'Melanie Perkins, CEO of Canva, believes that new technology is changing what individuals can create, how they produce it, and what they expect from the products they use.

Canva Inc is proposing a massive personnel and organizational restructure, with 1,271 people, or 22% of its workforce, expected to be affected as the Australian design technology business struggles with sluggish growth.

Melanie Perkins, Chief Executive Officer, revealed the changes in a statement to workers posted on the company's website. The reform will include employment losses, function adjustments, and relocations to central centers. However, Perkins did not specify how many people might eventually lose their employment.

According to Bloomberg, the Sydney-based firm, which offers an online design and publishing platform, is overhauling itself after seeing a slowdown in growth for the first time in ten years.

The move coincides with a broader upheaval in the global software sector, where artificial intelligence (AI) is changing how products are created and consumed. AI-powered tools let people do tasks that once required specialised software, and businesses are increasingly adopting the technology to boost productivity and operate with smaller teams.

Perkins, who co-founded Canva with Cliff Obrecht and Cameron Adams, believes the firm should streamline its organisational structure and revert to smaller, more empowered teams. The restructure will also include a reduction in the number of specialisations across the firm.

"New technology is transforming what people can create, how they create it, and what they expect from the products they use," Perkins said in her memo to workers. "I've come to the difficult conclusion that small changes won't be enough."

She called the reorganisation "the most difficult moment in our 13-year history."

As part of the restructure, Sydney will become the principal location for a bigger portion of Canva's product teams. The firm also intends to promote in-person cooperation among employees.

Perkins stated that most staff who are now working in hybrid arrangements will be required to spend two to three days per week in the office beginning in January.

The revisions represent a substantial shift in Canva's operating model as the company works to adapt to the expanding influence of AI and shifting consumer expectations in the software and design industries.

According to layoffs.To clarify, 341 organizations have laid off a total of 1,38,314 IT personnel this year.