Canva CEO says a major reorganization will affect 22% of its workforce. Read the memo.

Canva has announced a important restructuring.

On Tuesday, the scheme application company's CEO, Melanie Perkins, published a memo sent to workforce titled "An crucial update on our team." In it, she stated that 1,271 employees, approximately 22% of the workforce, volition be affected by a reorganization. Some workforce volition see their roles alter or relocate, she said, during others volition endure their jobs.

It comes following Canva lowered its growth expectations. In August, the business changed its 2026 income growth forecast from 30% to 20%. In Tuesday's memo, Perkins stated that this twelvemonth has been the company's "hardest twelvemonth yet" and that "growth has slowed for the archetypal period in a decade."

Canva has additionally faced caller competition from AI tools, including OpenAI's and Google's image-generating models.

Read the memo:

Hi everyone,Today, I have several deeply difficult news to share.After months of thinking through how to set Canva up for the next chapter, we have made the incredibly difficult decision to create important changes to how we're organised, anywhere several of our teams are based, and the roles and skills we need for the future.This method 1,271 people, or 22% of Canva, volition be impacted. For several people, this volition average changes to their roles or being asked to relocate to centralised hubs. Sadly, it volition additionally average saying goodbye to teammates and allies who have helped build Canva into what it is today.This is without doubt the hardest instant in our thirteen-year history. Behind all decision is person we attention deeply about, and I cognize the consequences volition be extremely genuine for those immediately affected, their families, allies and teammates.I'm deeply apologetic for the ache and disruption this volition logic for everyone affected. While nothing can create this news easier, we volition do everything we perchance can to assistance everyone affected. I desire to explain as openly as I can why we're making these changes, how we reached these decisions, and, most importantly, how we volition attention for the group affected today.

Why we're making these changes

We've spoken a lot concerning how quickly the earth is changing. New innovation is transforming what group can create, how they create it, and what they anticipate from the products they use.Over the former thirteen years, we've turned a aspiration in a throw phase into a phase used by hundreds of millions of people. None of it would have been imaginable without the talent, imagination and attention of all sole individual who has been part of this journey. Yet achievement in our archetypal division doesn't justify achievement in the next. This has been our hardest twelvemonth yet, and as we shared before this year, our growth has slowed for the archetypal period in a decade.After exploring a broad range of alternatives, I've arrive to the difficult decision that small changes won't be enough. To set ourselves up for the next decade, we need to refound Canva, getting rear to our roots of small, empowered teams alongside the liberty to create decisions, obtain ownership and concentration on what matters most for our community.It additionally method making several of the hardest decisions we've always faced, including saying goodbye to group who have helped create Canva what it is today. For that, I am deeply sorry.

What we're changing

We're making three changes to bring additional of what has made Canva particular rear into how we work.#1. We're simplifying how we arrive together to build CanvaAs we've grown, additional of our activity has rotate into organised about squad structures and narrow areas of ownership. Improving one part of our merchandise frequently requires navigating between Product, Growth and Platform, alongside additional handovers and coordination than necessary. This has made it harder to obtain ownership of bigger problems and to build a deeply unified merchandise for our community. We've tried many ways to resolve this complete the years, but it's rotate into apparent we need to revisit our underlying structure.To do that, we're bringing Product, Growth and Platform together into one Product Org and changing the way we activity to provision clearer ownership, greater autonomy and elasticity to tackle our most crucial goals. We desire to get rear to spending additional period building, and small period navigating how activity gets done.#2. We're reducing subspecialisation and collapsing layers to broaden ownershipOver time, we've divided activity throughout additional and additional subspecialties and teams. While this has helped us build precious expertise, it's additionally fragmented ownership and made it harder to see the complete picture, alongside distinct teams liable for many pieces of the identical work.We're reducing this fragmentation and incorporating narrower subspecialties into broader roles so teams have additional ownership of goals from commencement to finish. We're additionally simplifying layers, consolidating overlapping responsibilities, and ensuring teams have the correct mix of skills and cognition for the division ahead.#3. We're co-locating closely connected teams and expanding in-person collaborationWorking throughout countries has brought enormous benefits and talent, but it's additionally made it harder to bring the correct group together to resolve complex problems. We'll continue investing in our earth team, particularly anywhere being near to our community, customers and markets matters most.At the identical time, Sydney volition rotate into the chief residence for additional of our merchandise teams, as fine as roles in another Specialties anywhere shared environment and near collaboration are particularly important. We cognize relocating is a big decision for those being asked to regard it, and we're committed to making the procedure as gentle as imaginable alongside thorough support.We additionally desire to bring additional teams together in individual to build trust, study from one another and fortify the connections that create Canva special. From January, we anticipate most Hybrid Canvanauts to expend about 2 to 3 days in the agency all week, depending on what makes awareness in your area.

How we approached these decisions

I cognize many of you volition have questions concerning how we made these decisions. We began alongside one question: what does Canva need to do to win in the division ahead?We started alongside our goal and forthcoming goals, afterward considered the structures, skills and locations needed to accomplish them. Only afterward did we appearance at what this would average for idiosyncratic roles. While understanding how we reached these decisions won't create them any small painful, I desire to emphasise that they are not a consideration of the talent, attention and dedication group have brought to Canva, their skills or the enormous contributions they've made alongside the way.

Supporting those who are leaving

We cognize everyone's circumstances are different, and during nothing can create today's news easy, we've tried to indicate those distinct needs in the financial, occupation and wellbeing assistance we're providing to everyone affected:

• Everyone volition obtain at smallest six months of salary, inclusive of statutory entitlements, despite of location.
• Removing the one-year vesting cliff for those who joined in the former year.
• Twelve months of continued healthcare coverage in countries anywhere we currently provision this.
• Twelve months of Canva Care (our EAP), alongside this safety additionally extending to family members.
• Dedicated occupation support, including one-on-one coaching, discussion preparation, and one twelvemonth of LinkedIn Premium. We're additionally dedicating a important part of our Talent Acquisition squad to assisting group assessment their resumes and custom for interviews to discover their next opportunity.
• An opt-in alumni endowment directory that we'll proactively portion alongside our investors, partners, and wider industry network to assistance nexus departing Canvanauts alongside new roles.
• Everyone leaving volition be capable to keep their Canva MacBook as we cognize not everyone has a individual laptop.

We're additionally launching the Canva Collective Fund, providing US$10,000 grants to departing Canvanauts who desire to commencement item of their own. Whether it's starting a endeavor or doing item meaningful for their local community, the prosperity is designed to assistance get those ideas off the ground. Everyone leaving as part of these changes volition have until the 14 of December to enroll their interest, and we won't obtain any ownership or equity in what they create.

What happens next

Our contiguous precedence is to create period for the conversations alongside everyone immediately affected by these changes. Those affected volition obtain a calendar invitation for an idiosyncratic gathering alongside a elder chief in their area to conversation the next steps and assistance accessible should they desire to attend.With teams throughout 37 countries, we'll need to prosecute distinct local requirements and processes, which method the timing and way these conversations happen may change depending on anywhere group are based.We additionally desire to provision everyone the period to procedure this news and say goodbye in their own way. Everyone leaving Canva volition continue to have admission to Slack and Gmail until the end of the week, so they can choose whenever and how to portion the news alongside their teams. This method you may not cognize exactly how your squad is changing direct away, and we ask everyone to regard the privacy of those having these conversations. Leads volition portion additional concerning the changes to distinct areas by the end of the week.We've put together several answers to average questions and everything you need to know. There's no need to peruse through everything correct now, but we anticipation they'll be helpful whenever you're ready. Next week, we'll arrive together for a Company All Hands on November 10th to conversation through these changes, answer questions, and portion additional concerning the way ahead. We've asked Org Leads to delay until following this to bring their teams together, alongside Org All Hands taking location from November 11th.To everyone continuing at Canva: I cognize this news volition be incredibly difficult, particularly as we say goodbye to allies and teammates who have been specified an crucial part of our journey. Please appearance following yourselves and one another and be there for those who are leaving. We're additionally cancelling non-critical meetings for the remainder of the week, and advance anyone who needs several period and area to procedure this news to obtain the day off. There's no need to log this as leave.To those who volition be leaving Canva: I desire I could adequately province how grateful I am for everything you've contributed. The Canva that exists today is the outcome of your difficult work, creativity, enthusiasm and care. Hundreds of millions of group about the earth have been empowered by what you've helped build, and I anticipation you cognize fair how much of a difference you've made. I am deeply apologetic this is how your division at Canva is ending. Please cognize these decisions do not diminish your talent, the value of your contributions, or the difference you've made here. We volition do everything we can to assistance you in what comes next, and I anticipation the activity we do from current volition be deserving of what you've helped build.Mel