Canva slashes workforce as AI drives company restructuring

Graphic design platform Canva has announced a major corporate restructuring affecting about 22% of its workforce, approximately 1,271 employees, through layoffs, role changes  and mandatory relocations. 

Canva CEO Melanie Perkins said the company is adapting to rapid industry changes driven by the rising prominence of artificial intelligence (AI).

Ms Perkins said this marks the company's first growth slowdown in its 13-year history, describing it as an exceptionally difficult period. The restructuring paved the way for a leaner organisational model designed to position Canva for future challenges.

Under the new strategy, teams will cooperate more closely to speed up decision-making and boost efficiency. This streamlined approach may increase individual workloads to better meet platform user demands, she said. 

Additionally, Canva is transitioning to a hybrid work model, requiring staff to work from the office two to three days a week depending on their role and team location.

While the exact number of laid-off employees has not been disclosed, affected staff will receive a comprehensive severance package. Benefits include at least six months' severance pay, permission to keep their company MacBooks and an extension of health insurance coverage for up to 12 months.

Departing employees will also receive up to 12 months of extended access to the Canva Care Employee Assistance Program (EAP) for mental health support, which extends to their families. Canva is providing career transition support, including CV reviews, mock interviews, and a free one-year LinkedIn Premium subscription. Furthermore, laid-off staff can apply for up to $10,000 from the Canva Collective Fund to start a business or community initiative.

The restructuring comes as Canva faces intense competition from rivals, particularly AI chatbots capable of generating and editing images and content autonomously. In response, the platform continues to accelerate the development and rollout of its own AI features.

Source: TechCrunch, The Guardian