Canva restructuring will affect 1,271 employees, representing 22% of its workforce, as the Australian design software company responds to slowing growth. The changes include layoffs, team consolidation and broader responsibilities for remaining employees.
Co-founder and CEO Melanie Perkins announced the decision in a message to staff, describing the past year as Canva’s most difficult. She said the company had experienced its first growth slowdown in a decade despite building a platform used by hundreds of millions of people.
Perkins said Canva’s earlier success did not guarantee continued growth. The company now plans to simplify its operations and change how teams develop and deliver products.
Canva Restructuring Brings Major Organizational Changes
Canva will combine its product, growth and platform teams to reduce communication barriers and speed up decision-making. It also plans to reduce narrowly specialized roles, meaning employees may take on broader responsibilities.
The restructuring is intended to eliminate overlapping work and improve coordination between departments. Canva believes its existing organizational structure has become less effective as the business has expanded.
The company is also moving toward a hybrid working model. Employees will be expected to spend several days each week in an office, marking a shift toward more in-person collaboration.
AI Costs and Slower Revenue Growth
Canva’s workforce changes follow rising AI-related costs. The company has invested in developing its own AI models to reduce expenses and dependence on third-party technology providers.
Despite those efforts, Canva lowered its revenue growth forecast from 30% to 20%. The revision reflected increasing AI-related expenses and slower business growth, as detailed in a report on Canva’s revised revenue outlook.
The financial pressure has also affected Canva’s valuation. Earlier this year, investors reduced their assessment of the privately held company to approximately $35 billion, reflecting concerns about its growth prospects. The valuation adjustment followed a period of substantial expansion.
Competition Intensifies in AI-Powered Design
Canva faces increasing competition from AI startups and established technology companies offering automated design tools. ChatGPT’s image-generation capabilities and Google’s Gemini allow users to create visual content without relying entirely on traditional design software.
These tools increasingly compete with Canva’s core offerings, including presentations, marketing materials and social media graphics. Canva has responded by expanding its AI features while trying to control the cost of running them.
The restructuring represents a significant change for a company that expanded rapidly through accessible, browser-based design tools. Canva must now balance continued investment in AI with tighter operating costs, while competing against products that are changing how users create visual content.
