Canva is undergoing a major reorganisation affecting 1,271 employees, cutting 22 percent of its workforce as growth slows in what the company has called its hardest year in its thirteen-year history.
The Australian design software company announced the restructuring on November 3, according to Business Insider, which published the chief executive’s memo to staff. The cuts mark a sharp reversal for a company that grew rapidly during the pandemic and became one of Australia’s most valuable private technology firms.
According to the Global Advisors News Brief, the reorganisation reflects a decade-long growth slowdown that has hit the company hard. Canva has faced rising competition, higher costs and a cooling market for design tools as businesses cut spending.
What the company said
The chief executive’s memo, reported by Business Insider, described the restructuring as necessary to focus the business and return it to sustainable growth. The company did not give a detailed breakdown of which roles or regions would be most affected, although the cuts are understood to span multiple teams.
Canva employs thousands of people across Australia, the United States and other markets, and the layoffs will be felt across its offices. The company has said it will support affected staff, although the details of severance and assistance have not been made public in full.
A wider tech slowdown
The Canva cuts come as technology companies around the world reassess their workforces after years of rapid hiring. Investors have pushed firms to show profitability rather than growth at any cost, and many have responded with layoffs and restructuring.
For Canva, which built its reputation on making design accessible to everyone, the cuts are a test of whether it can maintain its culture while shrinking. The coming months will show whether the reorganisation restores growth or marks the start of a longer retrenchment.
