Canva cuts or moves 1,271 employees in global shakeup

Canva announced on Wednesday that it will cut or relocate 1,271 jobs. This move affects 22% of the company's global workforce. The change is part of a major restructure aimed at reducing management layers.

Melanie Perkins, the chief executive, emailed staff to explain the decision. She called it the hardest moment in the company's thirteen-year history. The firm was founded in Australia and has been a top startup in that market.

Perkins noted that some employees will switch roles or move to centralized hubs. Others will leave the company entirely. She acknowledged that saying goodbye to teammates who helped build the platform would be difficult.

The company is focusing on bringing more teams together in person. This strategy mirrors trends in the software sector. Firms are adjusting to stay competitive against cheaper artificial intelligence tools.

Canva did not mention AI specifically in its announcement. It also did not specify the exact number of layoffs versus relocations. Perkins stated the company is committed to making the relocation process smooth with comprehensive support.

Employees leaving Canva will receive at least six months of salary. They will also keep their healthcare coverage for 12 months where applicable. Departing staff can keep their company laptops.

Those leaving may apply for a US$10,000 grant to start their own ventures. This sum is equivalent to A$14,000. Canva has long been expected to list on the Nasdaq.

The restructure follows similar moves by other tech firms. Atlassian recently cut 1,600 jobs. Block and WiseTech Global also announced job losses. Many software companies have overhauled their models to adopt AI tools, though some reject the idea that AI makes their products redundant.