The Canva AI restructuring will change roles, require relocation, or end employment for 1,271 people, 22% of staff, after growth slowed for the first time in a decade. Chief executive Melanie Perkins told staff that small changes will not be enough as Canva seeks simpler teams and faces rising costs from AI features. For publishers using the platform for graphics and presentations, the reset shows how generative tools can strain a design business even when demand is strong.
Key Takeaways
- Changes affect 1,271 people, 22% of staff, via cuts, moves, or new roles.
- Growth slowed for the first time in a decade; forecast revised from 30% to 20%.
- Perkins has not said how many of the 1,271 will actually lose jobs.
- Reported support includes six months’ pay, a year of healthcare, and $10,000 grants.
Details of the Canva AI restructuring
Perkins set out the plan in a staff note in early November. The Verge reported it on Nov. 3. The Straits Times said the note went on Canva’s website on Nov. 4, and that Perkins did not specify how many of the 1,271 people will lose jobs rather than change roles or move.
For some people, this will mean changes to their roles or being asked to relocate to centralised hubs. Sadly, it will also mean saying goodbye to teammates and friends who have helped build Canva into what it is today.
That is Perkins, as quoted by The Verge. She said Canva needs to “refound” itself around “small, empowered teams.”
The structural changes, as described by TechCrunch, The Verge, and Mashable, are these:
- Merging Product, Growth, and Platform into one product organization.
- Simplifying layers and consolidating overlapping responsibilities.
- Fewer niche specializations, with broader roles for those who stay.
- Making Sydney the main base for more product teams, with some hub moves.
- Expecting most hybrid staff in an office two to three days a week from January.
Perkins co-founded Canva in 2013 with Cliff Obrecht and Cameron Adams. Teams span 37 countries.
Why Growth Slowed and the Forecast Fell
Perkins called this “our hardest year yet,” and Mashable quoted her calling it “the hardest moment in our thirteen-year history.” Growth slowed for the first time in a decade. Those are separate points from the forecast cut.
Mashable reported that in August Canva revised its revenue growth expectations from 30 percent to 20 percent, against 38 percent growth in the prior financial year. TechCrunch reported the same revision, from 30% to 20%, but did not give the month or the 38% figure. TechCrunch said the company still had to cut the forecast to address ballooning AI costs. It did not say those costs caused the growth slowdown.
TechCrunch reported that Canva has been shipping its own AI models to reduce costs and reliance on third-party systems. Mashable reported that Perkins told investors in August that demand for AI products was strong, but implementation was more expensive and took longer than planned.
Canva AI 2.0, launched in April, lets users create designs from conversational prompts. Mashable said Perkins had stated that cost per AI task had fallen 90 percent since that launch. That drop was not enough to hold the forecast, Mashable reported.
TechCrunch cited competition from AI startups and from ChatGPT and Gemini, whose image tools let people put together posters and presentations. The Straits Times set the overhaul in a broader software sell-off, citing worry that Anthropic’s Claude lets customers do more without specialty programs.
Reported Figures, Not One Valuation
These figures come from different outlets, dates, and methods. They are not one valuation, and they are not a layoff count.
| Metric | Figure | Outlet |
|---|---|---|
| Staff affected | 1,271 people (22%) | Multiple outlets |
| Growth forecast | Revised from 30% to 20% | TechCrunch, Mashable |
| Prior-year growth | 38% | Mashable |
| Monthly users | Over 265 million claimed; 208 million reported for July | Mashable |
| Internal valuation | $38.9 billion to $31 billion | Mashable |
| Investor marks | About $35 billion; two backers from $42 billion to $34.9 billion | TechCrunch; Mashable |
| Australian dollars | A$60bn to about A$49bn | The Independent |
| Peer comparison | Squarespace layoffs affecting 19% of staff | The Verge |
The Straits Times also noted a US$40 billion peak in 2021, a fall to roughly US$26 billion a year later, and a rebound whose latest mark is not yet clear. It said Canva has been preparing for a possible listing.
Exit Terms and What Publishers Should Watch
People leaving Canva will receive at least six months of salary, 12 months of healthcare, and career support, The Verge reported. The Independent said the note extends at least six months’ pay, 12 months of healthcare and mental health support, coaching, and job-search help to all 1,271 affected employees, who may keep their laptops.
Mashable reported further terms for people laid off, including a waived one-year vesting cliff for new workers and a year of LinkedIn Premium. It also reported $10,000 grants from a Canva Collective Fund, with no equity taken and applications closing on Dec. 14. The Independent likewise said the note offers $10,000 grants to affected employees interested in starting businesses or community projects, without taking equity.
For publishers and content studios, Canva is a production tool, not a media company, but the bill for generative features is now reshaping a platform many desks use. A reported 90 percent drop in cost per task did not preserve the 30 percent forecast. ChatGPT and Gemini are named as competition for posters and presentations.
Fewer specialists and in-house models may speed Canva or narrow it. The sources do not say prices or support for customers will change.
