Canva to Cut 1,271 Jobs in Major Business Restructure

Canva, the Sydney-based design company, has announced a significant restructuring that will see the reduction of 1,271 roles. This move affects 22 per cent of the company's global workforce and follows what co-founder and chief executive Melanie Perkins described as the hardest moment in the firm's thirteen-year history.

Why it is trending now

The company is undergoing a major internal shake-up in response to slowing growth observed throughout 2026, marking the first such period in a decade. Melanie Perkins informed staff on Wednesday that the business needs to “refound Canva” by returning to smaller, empowered teams to regain its startup agility and focus on product development.

Key facts

• According to The Sydney Morning Herald, the cuts involve 1,271 positions across the organization.
• Canva plans to consolidate its product, growth, and platform teams into one single product-focused unit, as reported by News.com.au.
• The company will shift towards a model where Sydney serves as the primary home for more product teams.
• Hybrid staff members will be expected to attend the office two to three days per week beginning in January, according to reports from Nine.com.au.
• Blackbird, a major venture backer of Canva, reportedly reduced its internal valuation of the company by 17 per cent.

Why this is trending in Australia

As a major Australian technology success story headquartered in Sydney, the announcement has drawn significant attention from the local business community and employees. The shift in operational strategy directly impacts the local labor market and the company's significant Sydney-based workforce.

Background and context

Canva has experienced rapid expansion over the last thirteen years, but the current economic climate and competition in the software industry have necessitated changes. Investor concerns regarding the impact of artificial intelligence on design software businesses have contributed to a challenging environment for similar companies. Rival design firm Figma saw its share value drop by more than half during the first four months of 2026.

What happens next

The company is moving forward with its plan to reduce management layers and centralize product teams in Sydney. Affected staff members are currently navigating the transition process. While the company intends to return to its roots with smaller teams, the long-term impact on its market position and product roadmap remains subject to its ability to execute this organizational shift successfully.