Canva to lay off or relocate more than 1,200 employees

What is changing at Canva

Canva CEO Melanie Perkins informed employees of the reorganisation in a letter on Wednesday. She called it the most difficult moment in the company’s 13-year history.

The company says the changes are intended to reduce the number of management layers and bring teams together in offices more often. Perkins did not specify how many people will lose their jobs: the total number affected also includes employees who will be offered a relocation.

Perkins said the company understands that moving is a major decision and promised comprehensive support to make the process easier. Those leaving Canva will receive at least six months’ salary. Health insurance will continue for another 12 months in countries where employees receive that benefit. Departing employees will also be able to keep their laptops and apply for a grant of $10,000, or A$14,000, to start their own business.

Restructuring in the tech sector

Canva’s changes come amid restructuring across the tech industry. Software companies are trying to compete with cheaper AI products while also actively incorporating AI tools into their own products and operations.

Canva is one of Australia’s most successful startups. It has long been seen as a possible candidate for a major Nasdaq listing. It has now joined companies that have already announced cuts: Atlassian laid off 1,600 employees, while job losses have also affected Block, which owns Afterpay, and software developer WiseTech Global.

Among established software developers, the term “SaaS apocalypse” is common. It describes a scenario in which AI becomes so advanced that specialised software is no longer needed. Companies have rejected this prospect, but many are responding by changing their business models or actively adopting AI tools. Canva did not mention AI in its announcement about the reorganisation.

Dataist’s take: The cuts will affect a significant share of Canva’s workforce, but the company has not disclosed how many employees will lose their jobs and how many will be asked to relocate. As debate continues over AI’s impact on the software market, it is notable that Canva linked the reorganisation to changes in team structure without mentioning AI.