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Canva Layoffs: Over 1,270 Employees To Be Affected As AI Triggers Major Restructuring

Canva will restructure its workforce, affecting 1,271 employees, as AI reshapes the software industry and pushes the design platform to streamline operations., Companies, Times Now Canva Inc. is planning a major organisational restructuring that will affect more than a fifth of its workforce, as the growing influence of artificial intelligence (AI) prompts the design software company to rethink its business model and team struc

By the Truvace desk2 min read1 sourceEvidence: Emerging · 45/100 — News report · n = 1,271 · 1 independent sourceJournalismTRV-2026-2371· cite & verify
Canva Layoffs: Over 1,270 Employees To Be Affected As AI Triggers Major Restructuring

In brief

Canva, the Sydney-based design platform, is restructuring in a way that will affect at least 1,271 employees, or 22 per cent of its workforce. They will lose their jobs, move into different roles or be relocated to central office hubs. CEO Melanie Perkins announced the changes in a company note on Wednesday, as reported by Bloomberg.

Perkins said new technology is changing what people create and what they expect from products, and concluded that small changes would not be enough. The article links the move to tools such as Anthropic's Claude, which may reduce reliance on specialised software, and to AI letting firms operate with leaner teams.

The exact number of layoffs has not been disclosed. The restructuring follows Canva's first growth slowdown in a decade and comes as the company prepares for a potential stock market listing, with the financial impact of tech-sector changes still uncertain.

Main points

  1. At least 1,271 employees, 22 per cent of Canva's workforce, will be laid off, moved to new roles or relocated to central hubs.
  2. Perkins called it the hardest moment in the company's 13-year history.
  3. The plan favours smaller teams with greater autonomy and fewer narrowly defined specialisations.
  4. More product teams will be consolidated in Sydney.
  5. From January, most hybrid staff must be in the office two to three days a week.
  6. Canva's growth slowed for the first time in a decade before the announcement.
  7. Valuation reached about $40 billion in 2021 and fell to around $26 billion the following year.

The problem

Canva will cut, reassign or relocate at least 1,271 employees, 22% of its workforce, as AI tools erode demand for traditional software and push the firm toward leaner teams.

The rundown

The announcement came in a note on Canva's website from CEO Melanie Perkins, reported by Bloomberg. Perkins wrote that new technology is transforming what people can create and how, and that she had reached the difficult conclusion that small changes would not be enough.

The article places the move within wider pressure on software firms. AI tools such as Claude are changing how people complete tasks, which could reduce dependence on specialised applications, while automation lets businesses run with leaner teams.

Beyond job changes, Canva plans to bring more product teams together in Sydney and increase in-person work. Most hybrid staff will spend two to three days a week in the office from January.

Canva was founded in 2013 by Perkins, Cliff Obrecht and Cameron Adams. It is now preparing for a potential listing, and its valuation moved from about $40 billion in 2021 to around $26 billion the following year before recovering.

Sources

  1. JournalismTimes Now2026-11-04

The debate