Canva, the Sydney-based design software leader, has announced a sweeping restructuring, marking what founder and CEO Melanie Perkins describes as the company’s hardest moment in its history. The move includes cutting over 1,000 jobs—nearly a quarter of its workforce—as part of a broader effort to refocus on smaller, more empowered teams. Perkins framed the decision as necessary to adapt to a shifting market, emphasizing a return to the company’s roots after years of rapid expansion.
The restructuring follows growing investor concerns about the impact of artificial intelligence on traditional software businesses.
At the heart of Canva’s changes is a consolidation of its product, growth, and platform teams into a unified organization. The goal is to streamline operations, reduce bureaucratic layers, and accelerate decision-making. Sydney is being repositioned as a central hub for product development, signaling a strategic realignment of resources.
To ease the transition, departing staff will receive six months of continued salary, healthcare benefits, and a $10,000 grant to support new ventures.
Perkins stressed the importance of this shift, stating, "Canva needed to refound itself, returning to small, empowered teams with the freedom to focus on what matters most for our community."
layoffs at canva 22% of staff let go https://t.co/J92G6ZvFjt
The job cuts will impact approximately 1,271 employees, a significant portion of Canva’s workforce. To ease the transition, departing staff will receive six months of continued salary, healthcare benefits, and a $10,000 grant to support new ventures. While the severance package aims to mitigate some of the hardship, the restructuring underscores the challenges facing even the most successful tech companies in today’s competitive landscape.
Canva’s valuation has also taken a hit, with major investors like Blackbird and Airtree reducing their stakes by 17% and 21%, respectively. The company’s valuation now stands at $34.9 billion and $31 billion, reflecting broader skepticism about the long-term viability of traditional software firms in the face of AI advancements.
The restructuring is not just about internal changes—it’s a calculated bet on agility. By shifting to smaller teams and centralizing key functions, Canva aims to remain competitive while navigating the uncertainties of the tech industry.
Atlassian claims it's cutting 1,600 people to "self-fund AI investment." Everyone's calling it "AI layoffs." But here's what the headlines miss: Unprofitable every year since 2017. Stock down 84% from peak. Down 50% in 2026 alone. Founders lost $7.2B this year. Worth less than Canva - a private company. Atlassian isn't replacing workers with AI. AI-native tools and vibe coded apps are replacing Atlassian.