Canva Restructures Workforce Affecting 22 Percent of Global Staff
According to reporting from The Verge, design software giant Canva is undergoing a massive organizational overhaul that impacts 1,271 employees. The restructuring plan, announced by CEO Melanie Perkins, involves a combination of job cuts, mandatory relocations to centralized hubs, and role changes as the company seeks to return to a more nimble operational structure.
Context from Industry Pulse
The restructuring at Canva arrives amidst a broader period of volatility for design and web technology firms. Just one day prior to Canva's announcement, Squarespace revealed it would lay off 19 percent of its workforce. These labor shifts coincide with high-activity periods in the tech sector, including major security acquisitions like CrowdStrike's $500 million investment in AI startups and ongoing legal tensions between legacy publishers like The New York Times and AI-focused browsers like Brave. Canva’s emphasis on consolidating product teams and mandating office returns suggests a strategic pivot toward operational efficiency over rapid headcount expansion as the firm enters its next decade.
The Verge reports that the changes at Canva represent a reduction of approximately 22 percent of the total workforce. CEO Melanie Perkins informed staff that the company needs to refound itself to prepare for the next decade of growth. This process involves shifting away from large corporate structures to regain the efficiency of small, empowered teams that can make decisions independently and focus on community needs.
As part of this transformation, Canva is consolidating its internal divisions. The Verge notes that the Product, Growth, and Platform teams will now merge into a single unified product organization. This move is designed to simplify management layers and remove overlapping responsibilities that have developed as the company scaled. Furthermore, Sydney will become the primary headquarters for a larger portion of the product and specialty teams to foster closer collaboration.
Relocation and office attendance are central to the new strategy. According to The Verge, some workers will be required to move to centralized hubs to keep their positions. Starting in early 2025, the company will also expect hybrid employees to work from a physical office between two and three days each week. This shift mirrors broader industry trends toward increased in-person requirements for tech staff.
For those departing the company, Canva has established a severance package. As reported by The Verge, outgoing employees will receive at least six months of salary and a full year of healthcare coverage. The company is also providing career support resources to assist those affected by the layoffs. These cuts follow a similar move by Squarespace, which recently reduced its own headcount by 19 percent.
The Industry Pulse Bottom Line
Canva is prioritising lean operations and physical centralization to combat corporate bloat. By cutting nearly a quarter of its staff and merging core departments, the company aims to regain the agility of its early startup phase.