Canva opens the season of structural cuts in the graphics software sector with the decision to cut 1,271 job positions, equal to 22% of the entire global workforce. The CEO and co-founder Melanie Perkins announced it through an internal communication sent to staff in recent hours, defining the measure as “the most difficult moment in the company’s thirteen-year history”.
“Deeply sorry”
A choice that follows that of many other tech giants globally, who are laying off staff. The CEO’s message, however, seems much more ‘human’ than the announcements of other companies such as Bending Spoons. “I am deeply sorry for the pain and disorientation this will cause for those affected. While nothing can make such news easier, we will do everything we can to support anyone affected. I want to explain with the utmost transparency why we are making these decisions, how we got there and, above all, how we will care for those who suffer the consequences starting today,” Perkins said.
Estimates revised downwards
The choice of the ‘slimming cure’ of a thousand ‘Canvanauts’ (as the group’s employees are called) breaks a trajectory of continuous expansion and comes after the company has revised downwards its revenue growth estimates for 2026, cutting forecasts from 30% to 20% on an annual basis against net sales reaching 3.5 billion dollars in 2025. Despite a valuation of between 40 and 42 billion, growth decelerated for the first time, prompting the company to take action.
The growing pressure from native competitors in artificial intelligence and the decline in conversion rates of premium users have convinced management to carry out a major accounting and operational review.
Internal restructuring and the clampdown on remote working
The strategic intervention announced by Perkins aims to reorganize the chain of command and centralize key activities. Product, Growth, and Platform divisions are unified into a single product structure to eliminate intermediate steps between teams. At the same time, Canva plans to eliminate highly hyper-specialized roles and reduce intermediate managerial levels. From a logistical point of view, the Sydney (Austrialia) headquarters will become the primary hub towards which numerous development teams will be reallocated.
For employees who will maintain the “hybrid” contract, from January the company will introduce the obligation to be present in the office for 2 or 3 days a week.
6 month severance pay and a 10 thousand dollar fund for new startups
The economic support measures for outgoing staff provide severance pay equal to at least six months of basic salary, regardless of the country of employment and local regulations. The company also removed the one-year vesting cliff for stock options vested by recently hired employees. Additional benefits include confirmation of company health coverage for 12 months and extended to family members, access to a one-year LinkedIn Premium subscription and the possibility of retaining company MacBooks.
Finally, Canva has established the Canva Collective Fund, a financial fund intended to provide non-repayable contributions of 10 thousand dollars each to former employees intending to start their own business, without any request for participation or shareholdings from the group.