Canva Is Restructuring 22% of Its Workforce. What Is Changing Inside Tech Companies?

Canva, the design platform used by hundreds of millions of people worldwide, has announced one of the biggest organisational changes in its 13-year history.

The company is making changes that will affect 1,271 employees, approximately 22% of its global workforce.

But this isn't simply a case of 1,271 people being laid off. According to CEO Melanie Perkins, some employees will lose their jobs, some will have their roles changed, and others will be asked to relocate to centralised offices. Canva has not yet disclosed the exact number of employees who will be leaving.

Why Is Canva Restructuring Its Workforce?

One of the biggest reasons Canva has shared is that its growth has slowed for the first time in a decade.

After years of rapid expansion, the company believes its internal structure needs to change to remain competitive over the next decade. Canva says that having multiple specialised teams and management layers has created unnecessary coordination, making product development and decision-making slower.

The company now wants smaller teams with clearer responsibilities, fewer management layers and greater ownership of projects.

What Exactly Is Canva Changing?

Canva has outlined three major changes:

1. Combining Product, Growth and Platform Teams

These functions will come together under one Product organisation. The goal is to reduce unnecessary handovers and allow teams to make decisions faster.

2. Reducing Management Layers

Canva plans to simplify its management structure, combine overlapping responsibilities and move towards broader roles where employees can take ownership of projects from start to finish.

3. Moving More Teams to Sydney

Sydney will become the primary base for more product teams. Some employees will be asked to relocate, with Canva promising relocation support.

From January 2027, most hybrid employees will also be expected to work from the office two to three days a week, depending on their location and team.

What Are Employees Getting After the Layoffs?

Canva has announced a support package for employees who are leaving the company.

Here is what it includes:

• At least six months of salary, inclusive of statutory entitlements.

• 12 months of healthcare coverage in countries where Canva provides it.

• 12 months of Canva Care, including support for family members.

• Career support, including one-to-one coaching, resume reviews and interview preparation.

• One year of LinkedIn Premium to help with job searches.

• Equity support: Recently hired employees will have their one-year equity vesting cliff removed.

• Keep their Canva MacBook: Departing employees can retain their company-issued laptops.

There's also an additional initiative worth highlighting.

Canva is launching the Canva Collective Fund, offering US$10,000 grants to departing employees who want to start a business or pursue a community project. Employees can register their interest until December 14, and Canva will not take any ownership or equity in these ventures.

The company is also creating an opt-in alumni talent directory to connect departing employees with potential opportunities through its industry network.

Is AI Responsible for These Job Cuts?

• AI is changing the design industry rapidly. Tools can now generate images, create layouts and automate tasks that previously required more manual work.

• However, Canva has not explicitly attributed these job cuts to AI. Its official explanation focuses on slower growth, organisational complexity and the need for a simpler operating structure.

What Happens Next?

Canva is now moving towards individual discussions with affected employees to explain their roles, next steps and available support.

The company has outlined two important dates:

• November 10: A company-wide All Hands meeting to discuss the restructuring and answer employee questions.

• November 11 onwards: Team-level discussions will begin to explain how individual departments will be affected.

The exact number of employees who will ultimately leave the company is still unknown, and the process will vary across countries depending on local employment requirements.

What Does This Mean for Upcoming Engineers?

Canva's restructuring highlights how quickly the technology industry is evolving. Companies are not just changing their products; they are also rethinking team structures, responsibilities and the skills they need.

For upcoming software engineers, building strong DSA and problem-solving skills, understanding core CS subjects like Operating Systems, DBMS and Computer Networks, and developing practical projects remain important.

At the same time, learning to work effectively with AI tools is becoming increasingly valuable. Engineers need to understand the code they generate, evaluate its output and solve problems independently.

One company's restructuring doesn't mean opportunities in tech are disappearing. But it does remind us that building a career in technology requires continuous learning and the ability to adapt.