Canva slashes 1,270 jobs as growth stalls and tech shifts

Canva is cutting 1,270 jobs — about 22 per cent of its global workforce — in a restructure co-founder and CEO Melanie Perkins calls the hardest moment in the company's 13-year history. The Australian design giant broke the news to staff in a memo, pointing to slowing growth and new technology reshaping how people create and use products. Some roles will shift or relocate rather than vanish, with Sydney tapped as the primary home for Canva's product teams.

Perkins told staff growth had slowed for the first time in a decade, and argued tweaks around the edges wouldn't get the job done. Canva says it weighed a range of alternatives before reaching the difficult conclusion that small changes won't be enough. Instead, it wants to re-found the company, getting back to small, empowered teams with the freedom to make decisions and take ownership. Notably, the announcement never actually says the words artificial intelligence.

The exit package lands on the generous side for tech: at least six months' salary, health and wellbeing support, and the removal of the one-year equity vesting cliff for some recently hired staff. Canva is also offering $US10,000 grants through a new fund for departing employees who want to start a business or chase a community project.

Relocation is in play too. Canva runs operations in Melbourne, Brisbane, Adelaide and Perth and operates in 37 countries, but Sydney becomes the main hub. From January, most Hybrid Canvanauts should expect to spend roughly two to three days a week in the office, depending on what makes sense in their area, Perkins said.

Canva grew out of a Perth start-up founded by Perkins and Cliff Obrecht, with Cameron Adams later joining as a third co-founder. It became one of Australia's biggest tech success stories and now powers a global design platform used by hundreds of millions of people.

The cuts land in a brutal stretch for Australian tech. Atlassian slashed 1,600 jobs earlier this year, saying AI would let it reduce headcount and redirect resources, and Block has also announced major workforce reductions.